Scania’s board of directors has called on its shareholders not to accept a takeover offer from German automaker Porsche, saying the bid undervalued the company.

Scania’s shareholders have received an offer to sell their shares to Porsche for SEK68.52 cash for each A share and SEK67.10 cash for each B share.

However, the offer has been made due to the requirements of Swedish stock market rules and, in its offer, Porsche said it had no interest in acquiring any Scania shares and had no plans for Scania’s future operations.

In early January, Porsche announced that it had acquired indirect control of Scania by increasing its holding in Volkswagen. As a result of this increase and the fact that VW‘s interest in Scania exceeds the statutory threshold of 30% of all voting rights, Porsche acquired indirect control of Scania. According to Swedish takeover law, it was consequently obliged to announce a mandatory offer for Scania shares not under its direct or indirect control.

“The board of Scania unanimously recommends that shareholders do not accept the offer,” the company said in a statement.

“Scania is… a strong, well positioned business with best in class profitability and excellent long-term prospects in heavy vehicles and services. The [previously-announced goal] of reaching 150,000 deliveries a year towards the middle of next decade remains unchanged.

“The offer is the minimum price prescribed by applicable rules, which is approximately 15% lower than the pre-offer price of Scania. Whilst recognising current financial market volatility, the board believes the offer does not reflect the long-term value of Scania.”