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SCANIA

MAN secures Scania financing

German truck maker and engineering conglomerate MAN said Monday it has secured a €11-billion credit line to finance its planned acquisition of Swedish rival Scania.

Even though MAN’s plans to acquire Scania have so far stalled on resistance by the Swedish truck maker to a tie-up, the German company said it had secured a syndicated credit facility of €11 billion to help finance the deal.

MAN signed a credit contract with a consortium of banks led by Citigroup, the Royal Bank of Scotland, BayernLB, West LB and Handelsbanken, it said.

“This will serve to support our offer for a complete takeover of Scania’s shares,” it said.

MAN formally launched a hostile takeover bid for Scania on November 20, offering €51.29 per share or €10.2 billion in all.

The German truck giant originally gave Scania shareholders until December 11 to accept the terms, but has since extended the deadline until January 31, 2007.

SCANIA

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.
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