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.
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By GlobalData
Volvo is also rumoured to be seeking a new alliance with Japanese truck maker
Nissan Diesel.
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