Wednesday 26th Oct 2016 - Logistics Manager

Scania fights back with £500m dividend

Scania has released plans to pay a £500m (SEK £7bn) special dividend to its shareholders, freeing up cash from within the company and making any other takeover attempt more expensive.

In a web-based press conference, Leif Osterling, president and chief executive of Scania [pictured] also confirmed that the company was considering further payouts in the future.

Scania has recently rejected a second hostile takeover bid from MAN, after the German company increased its offer to 10.3bn Euros, which Scania turned down saying it substantially underestimated future earnings potential.

The board of Scania has indicated to MAN that it was open for further discussions and said it regretted that MAN has decided to “maintain the hostile nature of its offer”.

It also said that because of conflict of interest, the representatives of Volkswagen on Scania’s board would have to abstain from participatin g in any decisions regarding MAN.