By Christina Zander
STOCKHOLM--A Swedish organization that advises and represents
private investors recommended Scania AB shareholders accept
Volkswagen AG's offer to buy the remaining shares in the Swedish
truck maker, striking a more positive tone on the proposed deal
than other local investors.
Stockholm-based Aktiespararna issued a statement Wednesday
recommending with "mixed emotions" that domestic private
shareholders accept the bid from Volkswagen, which already owns
62.6% of Scania.
The organization said Scania is "well managed and profitable,"
but believes the German auto giant's interests are "markedly
different" from those of minority owners. It added that a rejection
of the offer is likely to result in a drop in Scania's share price
and that an acceptance "is the least bad of two bad
alternatives."
Aktiespararna's recommendation contrasts with opinions issued by
some of the Swedish institutional investors holding Scania shares.
Certain minority shareholders in Sweden, such as Fjarde AP-fonden
and AMF, have rejected the offer.
Volkswagen has offered to buy remaining shares for 200 Swedish
kronor ($30.78) per share in a transaction valued at more than $9
billion, or a 36% premium over where the stock was trading when the
bid was launched in February.
Scania shares recently traded hands at 186.80 kronor up 0.8% in
Wednesday's session.
While it is unclear how many Scania shareholders are actually
represented by Aktiespararna, the organization estimates there are
about 100,000 private shareholders in Scania, representing 5% of
the capital. Volkswagen's offer expires April 25, and it can
withdraw if it fails to obtain 90% of Scania's capital.
Volkswagen's desire to take full control of Scania is part of a
broader plan by Volkswagen to integrate its commercial vehicle
operations, which include Scania, MAN and Volkswagen trucks. Before
the offer was made, the German company said it targeted EUR200
million in synergies annually by tying Scania and its German
subsidiary closer together.
Scania's minority shareholders feared such plans would allow
value in the shape of technology, trade secrets and other assets to
be transferred from Scania to MAN, which unlike Scania is already
100% under Volkswagen's control.
Aktiespararna's Chief Executive Carls Rosen said in a statement,
it was "about time" Volkswagen, which has controlled Scania since
2008, took responsibility and offered to buy out minority
owners.
Write to Christina Zander at christina.zander@wsj.com
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