When Porsche made a mandatory low-ball offer to buy Swedish truck builder Scania few thought the offer would ever be accepted but that may soon change.
When Porsche made a mandatory low-ball offer to buy Swedish truck builder Scania few thought the offer would ever be accepted. However Scania's stock price has now dropped below Porsche's offering price, meaning a takeover might be imminent.
Analysts are predicting that nervous shareholders will jump at the chance to accept Porsche's offer in light of the stock's recent downturn and a gloomy outlook for the global economy which will hamper truck sales. If the analysts turn out to be correct, Porsche will acquire the company for €2.8 billion ($3.6 billion USD).
Porsche was required to make the mandatory offer for Scania by the Swedish government as a result of Porsche's increased stake in Volkswagen, which owns 69% of Scania. While Porsche has no interest in the trucking industry, the company hinted that it would most likely sell their shares of Scania to Volkswagen should their offer be accepted.