VW faces mounting opposition on Scania bid image

Volkswagen AG, Europe’s largest carmaker and the second global automaker, is facing a serious challenge to its bid to acquire the rest of heavy-truck maker Scania AB.

The 6.7 billion-euro ($9.3 billion) bid for acquiring full control over the truck maker is facing a setback – as two minority shareholders have rejected the offer. Alecta and AFA Foersaekring, which hold 2.04 % and 0.4 % of the stock said they would not support the 200 kronor ($30.4) a share bid for the company because the price is too low.

The two now join AMF, Skandia, AP4 and Investor AB, which already rejected VW’s proposal – which brings the combined stock owned by them to north of 5.2%. To forego the offer the minority shareholders would need to tally at least 10% of stock.

“Achieving the 90 percent acceptance threshold for VW is not a given,” said in a note Alexander Whight, a JPMorgan Chase & Co. analyst.

The VW offer was 36% bigger than Scania’s closing price on the day of the bid, but Volkswagen said earlier this month it has no plans of raising the price – and needs a 90% acceptance for compliance with Swedish law, which would force the remaining owners to sell their shares. Scania’s capital is already owned 62.6% by VW through direct and indirect holdings.

Via Bloomberg