Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Xetra  >  Volkswagen AG    VOW3   DE0007664039

Real-time Quote. Real-time Tradegate - 09/28 02:00:40 pm
114.995 EUR   +1.59%
12:55p Automakers, Telecom Equipment Firms Form 5G Auto Alliance
12:06pDJTakata in Talks to Resolve Allegations of Criminal Wrongdoing
11:45a VOLKSWAGEN : MAN and Scania determine principles for joint developme..
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Volkswagen Raises Stake in Truck Maker MAN Above 75%

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/05/2012 | 05:05pm CEST

-VW keeps all options open for future truck alliance between MAN and Scania

-Power engineering unit to remain part of MAN

-MAN shares jump 8%

-Fitch says Volkswagen's diversification underpins decision to change ratings outlook to positive

(Adds analyst comment in 7th and 8th paragraphs, background and share price data)

 
  By Christoph Rauwald 
 

FRANKFURT--Volkswagen AG (>> Volkswagen AG) Tuesday tightened its grip on German truck maker and engineering firm MAN SE (>> MAN AG) by lifting its voting stake above 75%, marking the next step towards forging a truck alliance with Sweden's Scania AB (SCV-A.SK) to take on global market leaders Daimler AG (>> Daimler AG) and Volvo AB (VOLV-B.SK).

"This marks a further important milestone for achieving our joint goals in the commercial vehicles business," Volkswagen Chief Executive Martin Winterkorn said in a statement.

Volkswagen said it will be "putting every effort into leveraging synergies and substantial growth potential" in the group's commercial vehicles business.

News of Volkswagen's increased stake in MAN follows the announcement of a wide-ranging management reshuffle at the automotive group including changes at its truck-making units. Leif Ostling, the chief executive of VW's Swedish truck brand, Scania AB, will join Volkswagen's management board and succeed Jochem Heizmann as truck chief. Mr. Heizmann will take on a new management-board post responsible for Volkswagen's Chinese operations.

The truck business has emerged as a second pillar for Europe's largest car maker after it acquired majority stakes in MAN and Scania in recent years.

Volkswagen's diversfication of its portfolio has included Porsche sports cars and most recently Ducati motor bikes as well as a big sales push in China and more recently the U.S..

The group's business profile is "at the top end of the sector," said Emmanuel Bulle, an analyst at Fitch Ratings. The agency has raised its credit outlook for Volkswagen to positive from stable.

"Volkswagen's substantial cash pile and free cash flow generation provide the group with significant headroom in its ratings and should enable it to absorb further expected investment without impairing key credit metrics," Mr Bulle said.

Mr. Winterkorn said MAN will "retain its operational autonomy" while its power-engineering unit, which produces large diesel engines and other machinery, would remain "a solid part" of the Munich-based firm.

Under German stock market rules, investors have to disclose if they cross the 75% stake threshold. Volkswagen so far held a stake of just below 75% in MAN.

Volkswagen Chief Financial Officer Hans-Dieter Poetsch reiterated Saturday that the company is keeping all options open for the future structure of its truck alliance. This includes a so-called domination agreement under German stock market rules, which would give Volkswagen complete access to MAN's cash flow. A domination agreement requires a 75% voting majority at shareholder meetings.

"MAN and Scania can raise their profitability further through closer cooperation," Volkswagen said, adding that all shareholders "will benefit from the associated growth in value."

Mr. Poetsch said cost savings, derived in part from closer cooperation in purchasing and research and development, could exceed the initial target of 200 million euros a year.

MAN shares were 8.2% at 84.33 euros around 1416 GMT, making it the biggest gainer in the DAX30 bluechip index, which was up 0.1%. Volkswagen's preference stock, its most actively traded securities, were up 0.4%. Shares in Scania were 0.4% higher at 116.70 Swedish kronor.

-Write to Christoph Rauwald at christoph.rauwald@dowjones.com

Stocks mentioned in the article : Volkswagen AG, MAN AG, Daimler AG
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on VOLKSWAGEN AG
12:55p Automakers, Telecom Equipment Firms Form 5G Auto Alliance
12:06pDJTakata in Talks to Resolve Allegations of Criminal Wrongdoing
11:45a VOLKSWAGEN : MAN and Scania determine principles for joint development
11:10a FIRST JOINT INITIATIVE LAUNCHED : Volkswagen Group and Gett roll out attractive ..
09/27DJFord Fights Back Against Trump Debate Claims
09/27DJVOLKSWAGEN : Shares Drop on Reports DoJ Is Sizing Up Criminal Fine -- Update
09/27 2017 Mercedes-Benz E300 4Matic 30-Day Test Verdict
09/27 Here launches sensor-based real-time traffic data service
09/27 HERE unveils next generation real-time data services for automotive industry
09/27 AUDI : A5 and S5 to have India Launch Soon
More news
Sector news : Auto & Truck Manufacturers - NEC
01:11p HONDA MOTOR : reports another Takata airbag rupture in fatal Malaysia crash
12:06pDJTakata in Talks to Resolve Allegations of Criminal Wrongdoing
11:45aDJHanjin Sale Is Possible, Court Says
10:06aDJBank of England Re-Enters the Corporate Debt Market
08:49aDJGENERAL MOTORS : Promoting Women Is Crucial -- WSJ
More sector news : Auto & Truck Manufacturers - NEC
News from SeekingAlpha
09/27 Volkswagen, Audi accelerate fuel cell technology program with Ballard
09/27 WALL STREET BREAKFAST : Markets React To Presidential Debate
09/27 Volkswagen slides on reports of U.S. fine
09/26 BILD : Former Volkswagen CEO held back emissions cheating information
09/26 Volkswagen To Stage Comeback By Going After Subaru
Advertisement
Financials (€)
Sales 2016 210 858 M
EBIT 2016 11 017 M
Net income 2016 7 961 M
Debt 2016 26 717 M
Yield 2016 2,16%
P/E ratio 2016 6,84
P/E ratio 2017 5,35
EV / Sales 2016 0,41x
EV / Sales 2017 0,38x
Capitalization 59 919 M
More Financials
Chart VOLKSWAGEN AG
Duration : Period :
Volkswagen AG Technical Analysis Chart | VOW3 | DE0007664039 | 4-Traders
Full-screen chart
Technical analysis trends VOLKSWAGEN AG
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 32
Average target price 144 €
Spread / Average Target 27%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Matthias Müller Chief Executive Officer
Hans Dieter Pötsch Chairman-Supervisory Board
Martin Hofmann Head-Group Information Technology
Peter Mosch Member-Supervisory Board
Bernd Osterloh Member-Supervisory Board
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
VOLKSWAGEN AG-15.36%68 954
TOYOTA MOTOR CORP-18.73%195 811
DAIMLER AG-20.73%74 444
BAYERISCHE MOTOREN WER..-25.04%53 925
HONDA MOTOR CO LTD-22.22%52 843
GENERAL MOTORS COMPANY-7.09%49 669
More Results