MAN Workers Would Reject Takeover Bid by Scania, Germany's IG Metall Says

Workers at MAN SE, Europe’s third- largest truckmaker, would reject a takeover bid by Scania AB of Sweden, Germany’s IG Metall labor union said, after a report that Volkswagen AG may use Scania to merge its truck operations.

MAN isn’t against cooperation talks with Scania, although the Munich-based truckmaker must keep its mainstay commercial vehicles and diesel and turbo businesses, IG Metall’s Juergen Wechsler said in a statement late yesterday after discussions with worker representatives who are on MAN’s supervisory board.

Volkswagen, which owns 46 percent of Scania, wants to increase its Scania holding by transferring its almost 30 percent stake in MAN to Scania, German weekly magazine Der Spiegel reported. Scania may then offer to buy out other MAN shareholders, Der Spiegel said. Volkswagen, MAN and Scania declined to comment.

MAN, which had 2009 sales of 12 billion euros ($16.4 billion), has a market value of 11.8 billion euros, valuing VW’s 29.9 percent stake at 3.5 billion euros. Scania, based in Soedertaelje, Sweden, has a market value of 116 billion kronor ($16.9 billion).

MAN made a hostile bid for Scania in September 2006 and was forced to withdraw the 10.3 billion-euro offer in January 2007 following opposition from Volkswagen and Investor AB, which was Scania’s second-largest shareholder. VW helped block the transaction by accumulating stock in both truckmakers.

Hybrid Components

In July, Volkswagen moved production chief Jochem Heizmann to a new post overseeing its truck holdings as Europe’s largest carmaker seeks to forge closer ties between Scania and MAN.

The truckmakers said in July that they were studying whether to work together on hybrid components research as well as to share gearboxes and axles. Scania Chief Executive Officer Leif Oestling said Oct. 25 that “we need a number of months more before we can say exactly where and how” it will turn out.

Volkswagen’s preferred shares have advanced 74 percent this year, making them the best performers in Germany’s benchmark DAX 30 Index. MAN’s stock has risen 51 percent and Scania has gained 58 percent in the same period.

To contact the reporter on this story: Ola Kinnander in Stockholm at okinnander@bloomberg.net.