MAN is preparing to increase its offer Scania, according to Swedish press reports today.
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This will be MAN’s third offer for the company, which according to Dagens Industri newspaper, will exceed 500 krona per share.
The last offer valued Scania at 475 krona per share, equivalent to a total of EUR10.4bn. An offer of around 500 krona would value Scania at EUR10.9bn.
MAN’s first job would be to convince Scania’s second largest shareholder, Investor, to accept its offer. Earlier this week, Scania’s largest shareholder, Volkswagen, said it would support an acquisition of Scania by MAN, if MAN first reached an amicable agreement with Investor. Volkswagen is also MAN’s largest shareholder with a 15.06% stake. Volkswagen put a four-week deadline on that support.
According to Reuters, MAN will meet with Investor next week.
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By GlobalDataMeanwhile Scania CEO Leif Ostling, has told Swedish newspaper Dagens Nyheter that he believes Scania’s days as an independent company are numbered. However, this does not mean that Ostling believes that Scania needs a partner, either. After all, the company has just reported a 55% rise in third quarter net profit. Ostling is concerned that MAN is not as lean as Scania, and earlier this week criticised German corporate culture and governance.
Furthermore, he told MAN chief executive, Hakan Samuelsson, himself a former Scania executive, that he “hadn’t done his homework”, and that MAN had 5,000 too many staff in Germany.
American VW shareholder Tweedy Browne, warned Volkswagen management earlier this week not to become distracted by the opportunity to become a major player in the global truck business. Browne’s partner, Tom Shrager, told Focus Money magazine that Volkswagen should concentrate on restructuring its core brands, and not spend millions on the truck business. He added that he would view a merger of MAN, Scania and Volkswagen’s Brazilian truck business favourably, but not if Volkswagen has to finance it.
