Takeover rumours stop Scania trading

Trading in shares of Swedish heavy truck manufacturer Scania was suspended on Tuesday by stock market authorities in Stockholm following rumours that German industrial comglomerate MAN might make a bid for group.

Shortly before the suspension, which was imposed at 1409 GMT, German brokers were speaking of the possibility of a tie-up between MAN, which has made clear its desire to boost its truck-making unit through acquisitions, and Scania.

“The bourse stopped the trading as a result of these rumours, but not at our request,” said Scania spokesman Per Hillström.

In Germany, MAN declined to comment on speculation that it might make a move on Scania AB.

But MAN said the two companies had been in talks for some time now about the possibility of cooperating in the development and production of gear boxes and that those negotiations were continuing.

Shares in MAN rose sharply in late afternoon trade on the Frankfurt stock exchange, jumping 1.89 percent to 69.29 euros.


Volkswagen gets shares to take over Scania

Volkswagen, Europe's biggest carmaker, was set to take full control of Swedish truck manufacturer Scania on Tuesday after a small but crucial shareholder agreed to sell its shares.

Volkswagen gets shares to take over Scania
Swedish pension fund Alecta previously held out for a higher share price but agreed to sell its 2.04-percent stake in Scania, paving the way for Volkswagen to acquire full control the company.
On April 30, the German car giant said it lacked less than two percent more shares to reach its 90 percent goal, and thereby force the sale of the remaining shares.
"After new discussions with Volkswagen we have concluded that there will be no increase in their offer," Alecta said in a statement, referring to Volkswagen's refusal to pay more than 200 kronor ($30.5) per share.
In February, Volkswagen offered €6.7 billion ($9.3 billion) to acquire the nearly 40 percent of Scania it did not already own and to strengthen its position against its German competitors Daimler and the Swedish truck maker Volvo.
Scania's board of directors recommended shareholders not to part with shares at the price offered.
The offer expired on April 25th. However, confident that shareholders could be won over, Volkswagen extended its offer to May 16.
The German auto giant already owns truck and bus-maker MAN and bought into Scania in 2000.
It had previously said that it could make annual savings of €650 million through economies of scale by taking full control of the Swedish company.
The takeover is just the latest to hit Sweden's beleaguered vehicle manufacturing sector which has seen Chinese takeovers of the once iconic car brands Saab and Volvo.
Volvo Trucks announced more than 4,000 job cuts over the last six months and a voluntary redundancy scheme aimed to cut costs and increase profitability.