Daimler expects it got majority of Tognum: report
FRANKFURT (Reuters) - Daimler (DAIGn.DE) expects the offer it made for Tognum TGMG.DE jointly with Rolls-Royce (RR.L) garnered a majority stake in the German diesel engine maker, Daimler's finance chief told a newspaper.
"I expect that in the end we will jointly with Rolls-Royce have a significant majority," Bodo Uebber said, according to an excerpt of an interview to be published in German daily newspaper Handelsblatt on Monday.
Daimler, which already owned 28.4 percent of Tognum, and Rolls-Royce had offered 26 euros per share for the engine maker, valuing it at 3.4 billion euros ($4.91 billion). The offer ended on June 1.
The paper said the two companies would publish the final tally of the tender offer on Monday.
Once the takeover has been completed, Rolls-Royce will expand its marine and diesel power business while Daimler will re-establish closer ties with a major buyer of its truck diesel engines, which are retooled by Tognum for specialised uses.
The two hope to tap into a global market worth more than 30 billion euros a year.
Daimler once owned all of Tognum but sold it to Swedish private equity group EQT for 1.6 billion euros in equity and debt in December 2005. It then bought back more than 20 percent in April 2008, the year after its former unit went public.
(Reporting by Maria Sheahan; Editing by Marguerita Choy)
- U.S. small businesses borrowed more money in January than they did a year earlier, signaling continued growth in the economy despite a spate of cold weather that has been blamed for weakness in many other indicators of activity.
BEIJING/HONG KONG - China reiterated its opposition on Thursday to a European Union plan to limit airline carbon dioxide emissions and called for talks to resolve the issue a day after its major airlines refused to pay any carbon costs under the new law.