Volkswagen Group made an offer to MAN SE minority shareholders to buy out their shares for 80.89 euros per share. Right now the company owns 75% of MAN SE shares and the offer aims to make VW a sole owner of the mechanical engineering company. The offer represents a 7.1% lower number to MAN SE closing price of 87.1 euros.
“Due to the intensive discussions we expect that several investors and shareholders will call for a legal challenge to check the offered compensation,” Michael Punzet, an analyst at DZ Bank AG said in a note to clients cited by Bloomberg. “The expected legal challenge against the valuation of MAN as part of the domination agreement might lead to a delay.”
It is important to say that according to German law Volkswagen has to buy the rest of MAN SE shares which raised by 0.04% at 12:51 pm Frankfurt time.
Despite of shareholders intentions to take the case to the legal system, the CEO of MAN SE said the offer seemed fair to him considering European economic condition. “The prospects for the MAN group in 2013 have been affected by the decline in economic growth expectations.” he added.
Volkswagen AG plunged by 0.27% on Frankfurt Stock Exchange today at 1:00 pm.