German truckmaker Man says it will make US$12b offer for Sweden's Scania

  • Business
  • Monday, 18 Sep 2006

BERLIN (AP) - German truckmaker MAN AG said Monday it would make a euro9.6 billion (US$12.2 billion) offer for Sweden's Scania, a deal that would create Europe's largest maker of commercial vehicles. 

MAN AG said in a statement it would offer 0.151 new MAN shares plus euro38.35 (US$48.70) in cash per Scania share, an offer it said implied a value of euro48 (US$60.96) for each Scania share. 

Munich-based MAN, the continent's No. 3 truckmaker, said it had reached an agreement with Renault SA to purchase its 2.85 percent share stake, which carries 5.18 percent of the voting rights. 

It said the offer represented a premium of 39 percent and 36 percent for Scania class A and B shares, based on the three-month weighted average price leading up to Sept.11, when Scania's other shareholders include Volkswagen AG and Investor AB of Stockholm. 

Scania is Europe's fourth-largest maker of trucks, and a tie-up would create a challenger to Volvo and DaimlerChrysler in the commercial vehicles segment. 

The MAN statement did not address the question of whether Volkswagen or Investor AB would agree to sell, or what Scania management's attitude might be, saying the offer was a voluntary tender to shareholders.  

Volkswagen AG is Scania's biggest shareholder, with 18.7 percent of the stock but 34 percent of the voting rights in the company. 

Investor, controlled by Sweden's powerful Wallenberg family, has an 11 percent share of the capital in Scania. 

Through Investor and trusts, the family controls around 29 percent of the votes in Scania. 

MAN said the offer was conditional on it acquiring 90 percent of shares and on approval by anti-trust authorities.  

It said the deal could be completed by the end of the year. 

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