Monday, January 19, 2009

Porsche forced to bid $3.9 billion for Scania


Under Swedish takeover regulations, Porsche was required to make a bid for Scania after it earlier this month raised its stake in the truck maker's main shareholder, Volkswagen, above 50 percent, giving it indirect control of Scania.

Under a mandatory bid triggered by its takeover of Volkswagen (VOWG.DE), Porsche offered 68.52 Swedish crowns for each Scania A share and 67.10 crowns for each B share.

Porsche had already said earlier in January it had no strategic interest in the truck maker and was not interested in buying Scania shares, a position it reiterated on Monday.

The company added on Monday it believed its offer would not have any effect on the Sweden-based truck maker's business, employees or management.


Flushed with its billions from the hedge fund victory, Porsche can easily afford to add the Scania trucks to it's line of models. After the shrewed maneuvering for three years hiding its true intentions from hedge funds, Porsche can easily mislead in this case, and end up owning Scania to battle Mercedes in the trucking business.

Reuters: Porsche forced to bid $3.9 billion for Scania

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