MAN makes hostile bid for Scania
German truckmaker MAN launched a cash-and-share takeover offer for Swedish rival Scania on Thursday on the same terms it had previously proposed, going hostile after failing to clinch a friendly deal.
MAN said Scania shareholders had from November 20 until December 11 to tender their shares at a price of about 475 crowns in a e10.3bn ($13.2bn) deal designed to create a new leader in the European truck market.
Both Scania and its second-biggest shareholder, Investor, said they had yet to study the terms in the formal bid document, but added that if there were no changes to the offer, which both have repeatedly rejected, then their response was already known.
Traders cited speculation in the market that Scania could make a counterbid for MAN valuing the German firm at e76.50 per share.
The talk was fuelled by a report in daily newspaper Handelsblatt, which quoted sources close to Investor as saying it was preparing a possible bid for MAN. Scania declined to comment on the development.
“There are lots of rumours flying around. Too many in my view. And we don’t comment on rumours,” Scania head of communications Cecilia Edstrom said.
In a brochure detailing its offer, MAN made clear that the new management team of a combined group would be led by MAN’s chief executive, Hakan Samuelsson.
Previously, the company had only said that it would invite Scania executives to join the management board of the combined entity, implying that they would not be leading it but never explicitly stating that MAN’s own chief executive officer would run the new group.
The German truckmaker, which said the deal was conditional upon receiving a 90% acceptance rate, added that it reserved the right to extend the acceptance period and to defer the date for settlement.
MAN said that following recent talks with parties involved, it remained optimistic about gaining the necessary support. “We are looking forward to continue talks within the timeframe of our offer,” Samuelsson said in a statement. MAN expects an antitrust ruling by the European Commission on December 6, it added.
Volkswagen, which is the biggest shareholder in both MAN and Scania, has given the two firms until Friday of this week to strike an amicable deal and has left open its options thereafter.
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