When Porsche made a mandatory low-ball offer to buy Swedish truck builder Scania few thought the offer would ever be accepted. However Scania's stock price has now dropped below Porsche's offering price, meaning a takeover might be imminent.
Analysts are predicting that nervous shareholders will jump at the chance to accept Porsche's offer in light of the stock's recent downturn and a gloomy outlook for the global economy which will hamper truck sales. If the analysts turn out to be correct, Porsche will acquire the company for €2.8 billion ($3.6 billion USD).
Porsche was required to make the mandatory offer for Scania by the Swedish government as a result of Porsche's increased stake in Volkswagen, which owns 69% of Scania. While Porsche has no interest in the trucking industry, the company hinted that it would most likely sell their shares of Scania to Volkswagen should their offer be accepted.
afterace2
February 5, 2009 2:54 PM
