MAN has published its official offer for Scania, but Scania’s second largest shareholder, Investor, has already rejected it, saying what it has said before, that the MAN offer does not reflect the true value of Scania. Furthermore, there are reports that Scania may be preparing to make an offer for MAN.
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As expected, the bid values Scania at EUR10.3bn, according to dpa-AFX. The offer is valid from 20 November to 11 December, although MAN does retain the right to extend the deadline.
None of the conditions have changed from the original bid. As stated in September, MAN is hoping to acquire a 90% stake. 80% of the takeover price will be paid in cash and 20% converted to shares in MAN. This would give former Scania shareholders a 15.36% stake in MAN.
The German financial newspaper, Handelsblatt, has reported that Investor is backing a counter-bid for MAN by Scania, according to people close to the company. Investor boss, Börje Ekholm said a month ago that Investor would consider all alternatives, including a counter-bid.
The next major step in this game of poker is for Volkswagen to play its hand. Scania’s largest shareholder will discuss the situation tomorrow at its scheduled supervisory board meeting. Volkswagen had given MAN its backing for the proposed acquisition, if MAN could come to an agreement with Investor. This has not happened. Bernd Pischetsrieder, who is standing down as Volkswagen CEO from January, but may still be involved in Volkswagen’s commercial vehicle activities in the future, threatened hostile action if the various parties could not find an amicable solution.
The Volkswagen meeting is also important because it will formally accept Pischetsrieder’s resignation and appoint Martin Winterkorn as group CEO. Analysts are also expecting Volkswagen to announce the resignation of Wolfgang Bernhard, head of the Volkswagen brand, whose position will be weakened by the appointment of Winterkorn. Winterkorn plans to restructure the group, undoing work in which Bernhard had played a significant role.
