Sunday, 8 February 2009

Porsche to enter trucking business

When Porsche made a mandatory offer to purchase Swedish truck builder, Scania, a few thought the offer would never 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.

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