Daimler, Rolls-Royce mulling Tognum takeover

7th March 2011, Comments 0 comments

German automaker Daimler and Rolls-Royce are in "constructive discussions" concerning a takeover of Tognum, a German manufacturer of motors and turbines, Daimler and Rolls-Royce said Monday.

The two groups are interested in "acquiring the majority of Tognum in equal shares," a statement said, confirming a report by Manager Magazin.

The statement added that "no final decisions on increasing the equity interest have been made."

Tognum is based in Friedrichshafen, southern Germany.

Daimler, also the world's biggest heavy truck maker, already owns 28 percent of Tognum, a major supplier of Daimler's engines.

Tognum shares soared 21.27 percent to 22.44 euros in midday trading on the Frankfurt stock exchange while the MDax index on which they are listed was 0.84 percent higher overall.

Daimler shares showed a gain of 1.44 percent to 48.93 euros while the main market DAX index was 0.74 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.

© 2011 AFP

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