Daimler, Rolls-Royce mull Tognum takeover: report

7th March 2011, Comments 0 comments

German automaker Daimler and Rolls-Royce are mulling a takeover of Tognum, a German manufacturer of motors and turbines, a press report said on Monday.

Daimler and Rolls-Royce might acquire a 50-percent holding in Tognum, which is based in Friedrichshafen, southern Germany, Manager Magazin said, quoting "company sources."

Daimler, also the world's biggest heavy truck maker, already owns 28 percent of the shares in Tognum, a major supplier of Daimler's engines, and a decision on raising its holding should be made soon, the report said.

Tognum shares soared 25.95 percent to 23.30 euros in midday trading on the Frankfurt stock exchange while the MDax index on which they are listed was 0.82 percent higher overall.

Daimler shares showed a gain of 0.90 percent to 48.67 euros while the main market DAX index was 0.23 percent higher overall.

Tognum also builds motors for armoured vehicles and boats, and posted sales of 2.5 billion euros ($3.5 billion) in 2009, a level it expected to reach again in 2010.

Neither Tognum nor Daimler could comment when contacted by AFP.

© 2011 AFP

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