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VW offer for Scania is "too low", says independent committee

  • 18 March 2014
  • By David Wilcox

Directors of Scania are urging its minority shareholders not to sell their shares to Volkswagen at the current offer price, claiming that VW’s offer of SEK200 (£18.78) per share is too low.

VW last month bid to buy the 37% of Scania that it does not already own, wanting to accelerate the integration of its two European truck brands, MAN and Scania. Big savings from synergies in procurement, manufacturing and development are forecast.

But an independent committee comprising five Scania directors, advised by Deutsche Bank and Morgan Stanley, moved swiftly to recommend shareholders not to accept VW’s offer. They announced their recommendation today, just one day into the tender period, which runs until 25 April.

“Based on the long-term prospects of Scania, its growth outlook, technological excellence and the synergy potential, the committee believes the offer does not reflect the long-term fundamental value of Scania and a fair share of the expected synergy potential and recommends to Scania shareholders not to tender their shares.”

In particular, the committee opines that VW’s offer undervalues Scania long history of above-average profitability, which is expected to improve again in future because, said committee chairman  Åsa Thunman, “we are at or approaching the bottom of the truck market cycle and we will be seeing growth.”

Asia is highlighted as especially promising for Scania and there is also confirmation of a new Scania cab in the pipeline.

While recommending rejection of VW’s current offer, the committee declined to mention a share price that it would find acceptable.


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