Volvo and Investor break off discussions over Scania
VOLVO AND INVESTOR BREAK OFF DISCUSSIONS OVER SCANIA Volvo and Scania's principal owner, Investor, have broken off discussions pertaining to an acquisition of Investor's shareholding in Scania since the conditions for reaching an agreement do not exist at the present time. "I cannot express an opinion on the conditions for possible future discussions with Investor in this matter, but we are in no hurry," says Volvo's Chief Executive Officer Leif Johansson. "We acquired a 13% interest in Scania when, following discussions with Investor, we believed that Investor was considering withdrawing as the principal owner and accordingly was receptive to an offer for the entire company. Volvo wanted to ensure that it could participate in the discussions of Scania's future ownership, and we do not intend to sell our holding in Scania, regardless of possible changes in its ownership," Leif Johansson continued. "An independent Scania with its present owners, or a broad ownership structure, would also be a good solution for Volvo and in this context we have offered Scania's management cooperation in the areas of basic technology and components on projects benefiting both parties, without restricting our competition in the marketplace. We believe that such cooperation would benefit the two companies and their shareholders. "Volvo has clearly declared its intention to participate actively in the ongoing consolidation in the commercial vehicle industry. The decision to terminate discussions does not imply any changes in this objective, and we are now going to proceed with the work of strengthening Volvo's position, says Leif Johansson. February 22, 1999 For further information, please contact: Mats Edenborg, AB Volvo, +46 31 59 11 26, +46 708 59 11 26 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/02/22/19990222BIT00140/bit0001.doc http://www.bit.se/bitonline/1999/02/22/19990222BIT00140/bit0002.pdf