By Christina Zander
STOCKHOLM--Scania AB (SCV-A.SK) shareholder AFA Försäkring said
Wednesday it will reject Volkswagen AG's (VOW.XE) offer to buy out
remaining shares in the Swedish truck maker.
AFA Försäkring owns 0.4% of Scania's capital and by rejecting
Volkswagen's bid to acquire full control of the company it joins a
handful of other Swedish institutional investors like Alecta,
Skandia, AMF and Fjärde AP-fonden. Together they control 4.8% of
Scania's capital.
Volkswagen, which already owns 62.6% of Scania, offered in
February to buy out remaining shareholders for 200 Swedish kronor
($30.78) per share. The bid is valued above $9 billion and would
take full control of Scania. It is part of Volkswagen's broader
plan to integrate its commercial vehicle operations, which include
Scania, MAN and Volkswagen trucks.
Volkswagen said Scania shareholders will have until April 25 to
accept the offer and if the German car maker fails to obtain 90% of
Scania's capital it could withdraw the offer.
"We have taken into account both the recommendation of the
independent committee and made our own analysis," said Rolf
Eriksson, spokesperson at AFA Försäkring.
In contrast U.S.-based GAMCO Asset Management said Tuesday it
would accept the offer. GAMCO holds nearly 1 million A shares, or a
4.8% stake, and 0.2% of the B shares.
Volkswagen represents 89% of Scania's voting rights. Some
analysts have suggested that Volkswagen, offering a 36% premium,
was actually bidding too high for full control of Scania.
In March, however, an independent committee comprising some
Scania board members said the offer didn't reflect the long-term
value of the company based on its growth prospects, technological
ability and the potential synergies from the deal. That
recommendation sent a negative message to those watching the
negotiations, but Volkswagen rejected the recommendation and said
it wouldn't raise its offer.
At 0224 GMT shares in Scania traded down 5.2% at SEK173.50.
Write to Christina Zander at christina.zander@wsj.com
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