SWEDEN: MAN/Scania parties meet to find way forward
Representatives of MAN and Investor met with Volkswagen chairman Ferdinand Piech in Sweden on Monday to try to find a way to merge MAN and Scania.
Shareholders have rejected the proposed takeover of Scania by MAN, but VW and Investor, the two largest shareholders, have said they are still open to discussion. Negotiations will focus on terms acceptable to the parties involved. That might be within the framework of MAN's current takeover offer, which expires at the end of the month, and there have been rumours that a higher bid might be acceptable.
According to Reuters, Piech has taken personal responsibility for the negotiations. Volkswagen is the largest shareholder in both Scania and MAN. Volkswagen took a stake in MAN to ensure they maintained a strong position in the merged company. The German company hopes to include its South American truck operations in the merger in the future.
According to Reuters, the meeting was attended by MAN chairman Ekkehard Schulz rather than chief executive Hakan Samuelsson, who engineered the bid. Investor was expected to be represented either by chairman Jacob Wallenberg or his father Peter, honorary chairman of the investment vehicle. Not present was Scania CEO Leif Ostling who has vehemently opposed the deal. He was formerly Samuelsson's boss and, according to the FT, it's unlikely the two men would be able to work together.