Rolls-Royce expected to make a public offer on Wartsila -report

HELSINKI Tue Jan 21, 2014 2:17am EST

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.