"Sometimes your cards ain't worth a dime if you don't lay em down." The Grateful Dead couldn't have realize it at the time, but in the legal world of Mergers & Acquisitions, the lyrics to its cult classic song Truckin' may prove prophetic.
After acquiring majority stake in the Volkswagen group, Swedish law required that Porsche make an offer for Scania, which is in turn controlled by VW. Porsche obliged by submitting a lowball 2.8 billion euro offer, thinking and hoping the tender would be rejected since it had no interest in building vehicles any bigger than the Cayenne. PistonHeads reports that in the meantime, Scania's stock value, fueled by a 50% drop in fourth-quarter sales, dropped to a value below Porsche's offer. With those kinds of numbers, Scania's shareholders could be motivated to take Porsche up on its offer and unload their shares, leaving Stuttgart with more than it bargained for and the capacity to deliver its vehicles on the back of its own trucks.