VW gains control of MAN with stake increase

Discussion in 'Car News' started by dubbot, Jun 26, 2012.

  1. dubbot

    dubbot Well-Known Member

    Filed under: Truck, Europe, Volkswagen, Earnings/Financials
    [​IMG]Reuters reports Volkswagen has upped its stake in Maschinenfabrik Augsburg-Nürnberg - better known as MAN - from 73.76 percent to a full 75 percent. While that may seem like a slight jump, the move allows Volkswagen to ask for a domination agreement, which would give the automaker full control over the commercial vehicle company. Volkswagen and Audi currently share a similar understanding. MAN shares increased by around 9 percent on the news, with some investors believing Volkswagen could pay as much as $118 per share in a takeover bid.

    Technically, Volkswagen hasn't made a decision on either a takeover or a domination agreement, though the company says it's keeping all of its options open at the moment. CEO Martin Winterkorn says the larger stake in MAN "marks an important milestone for achieving our joint goals in the commercial vehicles business as elsewhere through close cooperation." Just how close that cooperation will become in the near future remains to be seen.

    Volkswagen has been slowly increasing its stake in MAN for the past year.VW gains control of MAN with stake increase originally appeared on Autoblog on Wed, 06 Jun 2012 18:31:00 EST. Please see our terms for use of feeds.
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