January 6, 2009

Porsche in awkward bidding position

German luxury automaker Porsche is being obliged to bid on a Swedish truck company that it has previously said it does not want, the company said.

Porsche said that stock market rules require it to bid on truck company Scania, the Swedish news agency Tidningarnas Telegrambyra reported Tuesday.

Porsche purchased more than 50 percent of the voting stock in Volkswagen, which owns a majority of Scania, forcing Porsche into the position of having to bid for Scania's outstanding shares, the news service said.

Scania Chief Executive Officer Leif Ostling said it was good for Scania to have the stability, provided by Volkswagen, which increased its stake in the company to 68.6 percent of the voting stock in March 2008.

Porsche later took control of Volkswagen, renewing concerns over Scania's future, the report said.

Porsche, which has four weeks to present a bid for Scania, has previously said it was not interested in taking over the truck company.