MAN trucks board rejects VW's takeover bid
The board of directors at heavy truck manufacturer MAN on Tuesday rejected a takeover bid by fellow German automaker Volkswagen, saying the price was too low and recommending shareholders turn it down.
The price offered by Volkswagen, Europe's biggest carmaker, "does not appropriately reflect the company's value," the board said in a statement, adding that it "cannot recommend" the offer to shareholders.
VW made an offer to buy all MAN shares at a price of 95.00 euros ($136.80) for ordinary shares and 59.90 euros for preference shares.
The offer period ends on June 29.
On Tuesday ordinary MAN shares closed at 95.29 euros, marginally above the offer price.
VW recently passed the threshold of owning 30 percent of MAN, meaning that under German law it was obliged to make an offer for all outstanding shares in the group, which also makes diesel engines and industrial turbines.
If Volkswagen gets its way, MAN will be combined with the Swedish truck maker Scania and Volkswagen's own commercial vehicle unit to create a major manufacturer of heavy trucks.
VW owns 70.94 percent of the voting rights in Scania, while MAN owns another 17.4 percent.
Any deal is also subject to clearance from competition authorities.
© 2011 AFP