Tognum shares boosted by possible new Daimler, Rolls offer

16th May 2011, Comments 0 comments

Shares in the German motor and turbine maker Tognum gained in morning trading on Monday after the auto group Daimler and Rolls-Royce mooted a raised offer for the company.

Tognum shares showed an increase of 0.58 percent to 26.2 euros, while the MDax index on which they are listed was 0.38 percent lower overall.

Late Friday, Daimler and Rolls-Royce said they might increase their offer by 8.3 percent to 26.0 euros for each Tognum share as part of a bid that runs from April 6 to May 18 but which had been rejected by Tognum directors.

Tognum is reportedly not hostile to a takeover but said on Friday it had not officially received the new offer and could thus not make any recommendation on it to shareholders.

A merger of the company with relevant activities already owned by Daimler and Rolls-Royce would create a global leader in the "off-highway" sector of marine, energy, defence and industrial applications.

© 2011 AFP

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