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Scania AB rejected the 6.7-billion-euro (9.3-billion-dollar) offer of Volkswagen AG for the companys shares Volkswagen doesnt own. As reported by the Wall Street Journal, an independent board committee said: “Based on the long-term prospects of Scania, its growth outlook, technological excellence and the synergy potential, the committee believes the offer does not reflect the long-term fundamental value of Scania and a fair share of the expected synergy potential”.

Volkswagen, which is currently the biggest auto manufacturer in Europe, already owns together with its own truck brand MAN about 89% of the votes and 63% of the capital in Scania. In February this year, VW made an offer of 200 Swedish kronor a share to Scania ABs minority shareholders in order to buy the remaining stock. This bid was estimated to a 36% premium over the companys share price at the time when the bid was made.

The refusal is a hard blow to the efforts of Volkswagen, which is trying to follow a plan of creating a global heavy trucks unit. Such a step would make Volkswagens presence strong enough in order to become a worthy competitor of companies such as Daimler AG and Volvo AB. There are two choices possible for Volkswagen now. The company may choose to raise its offer while trying to receive the long-awaited recommendation from the board of Scania. It is also able to offer its bid directly to the minority shareholders of the company.

Mr. Carl Rosen, chief of the Swedish Shareholders’ Association, which represents thousands of small investors, said in a telephone interview for Bloomberg: “We still welcome an offer as the situation with a majority owner that cannot represent the minority owners is untenable. We expect that VW, if they want to complete the transaction, will come with a new offer.”

Volkswagen underscored that its bid is aimed at securing at least 90% of Scania so that it can delist the company. This is the legal threshold, according to Swedish law, above which the remaining minority shareholders are forced to sell their stake.

The company also explained that it plans to issue an official statement over the rejection later on Tuesday. Its spokesman refused to make any more comments on the situation.

Scania AB fell by 3.83% by 12:43 GMT in Stockholm to trade at SEK 188.40, marking a one-year change of +35.34%. Prices fell earlier as much as 6.1%, marking the biggest intraday decline since July. The company is valued at 156.64 billion Swedish kronor. The 16 analysts offering 12-month price targets for Scania AB have a median target of SEK 200.00, with a high estimate of SEK 200.00 and a low estimate of SEK 125.00. The median estimate represents a 2.09% increase from the previous close of SEK 195.90.

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