Volvo,
the world’s second-largest heavy truck manufacturer, may lose up to $US190 million
if it sells its 3.3 percent stake in Mitsubishi Motors, according to a report
from Bloomberg News.
Volvo is understood to be negotiating to sell its $US270 million Mitsubishi
stake, acquired in 1999, to DaimlerChrysler. Tokyo’s Nihon Keizai Shimbun newspaper
reported that DaimlerChrysler has actually agreed to purchase the stake, Bloomberg
said.
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The news organisation added that analysts think the shares are presently worth
as little as $US88 million, representing a substantial loss for Volvo in less
than two years.
Buying the Volvo holding would boost DaimlerChrysler’s slice of Mitsubishi
from the current 34 percent and industry sources say the German-American company
may announce the deal as early as the shareholders meeting scheduled for April
11.
One possible stumbling block, though, is a current agreement between Mitsubishi
and DaimlerChrysler which states that D-C must not increase its holding before
2003 without Mitsubishi’s say-so.
D-C-installed Mitsubishi chief operating officer Rolf Eckrodt would not comment
to Bloomberg on the rumours, saying only that he hoped the two companies build
trucks togethe.
Volvo is also rumoured to be seeking a new alliance with Japanese truck maker
Nissan Diesel.
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