STOCKHOLM, Sweden (AP) -- German truck maker MAN AG is not required to put in a bid for all outstanding shares in Swedish peer Scania AB as a result of Volkswagen's ownership in both companies, the Swedish Financial Supervisory Authority said Thursday.
In Sweden an owner holding more than 30 percent in another company is required to make an offer for all outstanding shares. Although MAN only owns 13.2 percent of the capital and 17 percent of the votes in Scania, the watchdog had been reviewing whether Volkswagen's ownership in both Scania and MAN meant the two companies should be classified as ''acting in concert.''
In a statement released Thursday, the watchdog said there are circumstances speaking for that MAN and Volkswagen are legally acting in concert, but concluded that Volkswagen, as the biggest owner in Scania would be the one required to make the offer.
Volkswagen owns 68.6 percent of the votes and 37.7 percent of the capital in Scania after buying the entire stakes of the two large shareholders Investor AB and the Wallenberg Foundation for 200 kronor (US$33.65, euro21.35) per share in March.
However, it isn't required to put in a bid for the remaining shares because it has previously been granted exemption from the provisions on mandatory bids.
The situation has upset smaller shareholders in Sweden, who have seen the value of their shares in Scania drop well below the 200 kronor a piece paid to Volkswagen to Investor and the Wallenberg Foundation.
On Thursday, Scania shares fell by another 0.75 percent to 132.25 kronor (US$22.25, euro14.12) in Stockholm.
MAN in 2007 failed to complete a hostile, 10.3 billion euros bid for Scania, amid fierce resistance from key shareholders. However, Volkswagen's move in March could clear the road for new talks about merging Scania with MAN.
