The Board of Scania reiterates its rejection of MAN’s offer as it substantially undervalues Scania
According to reports in the market MAN has, in parallel to proposing friendly talks between the two companies, today entered the market as an aggressive buyer of high-voting A-shares in Scania. Following these reports, the Board of Scania reiterates its rejection of MAN's unsolicited offer. Furthermore, the Board of Directors emphasises, having consulted with its financial advisers, that the offer substantially undervalues Scania in two principal respects:
- The earnings outlook for the standalone company is significantly above current market consensus;
- MAN's announced synergies materially underestimate the true synergy potential of a combination of Scania and MAN.
Because of conflict of interest the representatives of Volkswagen on Scania’s Board have and will abstain from participating in any decisions regarding MAN.
Further information will be provided in connection with the third quarter results on
16 October, 2006.
For further information, please contact:
Cecilia Edström, Senior Vice President, Corporate Relations,
telephone +46 70 588 35 57