• 15
"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.

[Source: PistonHeads]


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 15 Comments
      • 6 Years Ago
      Porsche must be going "meh".
      • 6 Years Ago
      This is pretty hilarious, and I hope they accept. After Porsche played smart business for the last three years, now they get this, which could either screw them or turn into a hell of an opportunity to make even more money.
        • 6 Years Ago
        It will probably go well for Porsche. They wouldn't make an offer they couldn't afford, and given that Scania's shares are at a low point, they're set to improve under Porsche's control, whether direct or indirect.

        If the offer is accepted, it castrates VW slightly, and can only strengthen Porsche. That's the crux of the decision: how much do you want to hurt VW?
        • 6 Years Ago
        I believe Porsche's "lowball" offer was the minimum required by German law. They HAD to make an offer, but the offer had to be at least 2,8b Euros. Unfortunately, the lowest possible offer was more than the current market value of Scania.
        • 6 Years Ago
        Porsche is all about VW castration.
      • 6 Years Ago
      bit them is the arse this time around

      but Porsche deserved it for trying to get hold of VW

      Porsce used to be an entity that all wanted a piece of, not it means getting a VW
      and once they start sharing poertrains and such, Porsche might become another brand rather than something unique altogether

      Eventually the economy will improve and VW will become the more powerfull of the two, and that's when Porsche will start loosing it's identity
        • 6 Years Ago
        You make it sound like Porsche is run by the same idiots that run GM that ruined Saab.....
        • 6 Years Ago
        For a long time its been a stated aim that Porsche wants to buy all of VW, not just have a small stake. Simple reason is Porsche isn't big enough on its own to invest in the R&D needed to make a competitive sports car.

        Porsche will always keep its identity Its the one that going to be owning VW after all, it'll have all the power so will very easily be able to keep itself a step in front.

        A good bit of reading if you're curious to how all this has come about
        http://news.bbc.co.uk/1/hi/business/7843262.stm
        • 6 Years Ago
        Djees, how dumb is this :/

        You want to be replying just like all those other idiots who can't make a difference between a commercial GROUP and a BRAND?

        Because that kind of comments is really starting to annoy me.

        Oh, so a Murcielago is just an audi now, or is it?
        You do know who owns Bentley, do you? Yes, it's VAG, same people who own bugatti for god sake. So the veyron is just another golf, right?

        Rolls royce is a bmw? And the mini, how about that, mini seems to be a FWD bmw!...

        Or even better, ferrari makes lesser cars because it's owned by fiat? As is Maserati?

        ...
      • 6 Years Ago
      What goes around comes around.
      • 6 Years Ago
      Autoblock authors should do some more research befor making attention catching topic´s....

      Porsche don´t care much about if the vew remaining Scania stack owner sell their stocks to Porsche .... Porsche already have controll over 86% Scania vote right stacks... 69% directly owned by Volkswagen and 17% owned by MAN which is under controll of Volkswagen. So they only made a offer for the remaining 14% vote right stocks ....
      • 6 Years Ago
      In what universe does a 2.8billion euros considered a lowball offer? If i were porsche i'll prolly offer (at most) 500million for a truck company that nobody wanted.
        • 6 Years Ago
        When you don't know anything about the subject you really shouldn't speak. It makes you look quite foolish.

        Scania is worth FAR MORE than a few billion Euros. Their revenue was 10 BILLION EUROS in 2007 alone!

        Scania is the world’s THIRD largest make for heavy trucks and the world’s third largest make in the heavy bus segment.

        Scania is a global company with operations in Europe, Latin America, Asia, Africa and Australia.

        Scania operates in about 100 countries and has more than 35,000 employees.

        http://scania.com/about/
        • 6 Years Ago
        Takeover codes are usually quite specific about the value of mandatory offers.

        To be honest, anything that wipes the smile off Wee Wiedeking's face is fine by me.
      • 6 Years Ago
      I was laughing too when I read this. But then I realised; porsche is better than most financial institutions. If they have the cash, they should buy it. at such low prices, it could prove to be a bargain. In fact, all major, stable companies are bargains in this financial crisis.

      Porsche earned enough euros buy selling VW shares thanks to foolish shortsellers in banks and stock market. Now if they buy all the shares of Scania, they will easily be able to sell it for a higher price by next year when the crisis ends
    • Load More Comments