Rolls-Royce expected to make a public offer on Wartsila -report
HELSINKI Jan 21 (Reuters) - British engineering company Rolls-Royce is expected to make a public offer on the Finnish ship and power plant engine maker Wartsila, a Finnish newspaper reported on Tuesday, citing unnamed investors.
Wartsila declined to comment on the report and Rolls-Royce did not immediately respond to an emailed request for comment.
Earlier this month, the companies said Rolls-Royce had made a preliminary approach to Wartsila, but the talks ended without a deal. Wartsila clarified to Reuters that the British company had been interested in buying its entire business.
According to the report by Helsingin Sanomat newspaper, investors said Rolls-Royce has been planning to pay at least 50 euros per Wartsila share, which would value the company at around 9.9 billion euros ($13.4 billion). The stock closed at 40.68 euros on Monday.
By buying Wartsila, Rolls-Royce - the world's second-largest aircraft engine maker - would strengthen its marine business, which lowered its profit guidance in November.
Wartsila's largest owner, with a stake of 22 percent, is a joint venture of Fiskars, which is backed by Finland's Ehrnrooth family, and Investor AB, the investment arm of Sweden's Wallenberg family.
- Ten countries scour sea for Malaysia jet lost in 'unprecedented mystery' |
- Confrontation in Ukraine as diplomacy stalls |
- Missing Malaysian jet may have disintegrated in mid-air: source |
- Mexico kills drug kingpin reported dead years ago: official
- Pistorius vomits in court at Steenkamp autopsy details |