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Scania rejects Volkswagen takeover bid

Staff writer |
The board of Swedish truck manufacturer Scania recommended to reject a Volkswagen takeover bid, saying that the shares were under-valued.

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"Based on the long-term prospects of Scania, its growth outlook, technological excellence and the synergy potential, the Committee believes the offer from Volkswagen does not reflect the long-term fundamental value of Scania and a fair share of the expected synergy potential," says the statement on Scania's website.

On February 21 German carmaker Volkswagen, which currently owns 62.6 percent of Scania's share capital, announced their decision to offer Scania shareholders with 200 Swedish kronor (approximately $31) per share for the remaining stock regardless of classes of the shares, amounting to a total of approximately 6.7 billion euros ($9.33 billion).

Scania, which has been in operation since 1891, employs 38,600 employees in more than 100 countries and its headquarter is located in Stockholm.

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