MUNICH, June 6 Volkswagen AG is set
to gain full strategic and financial control over truckmaker MAN
SE when it wields its 75 percent stake to approve a
vote at MAN's annual shareholders' meeting on Thursday.
Volkswagen has tabled a motion to "dominate" MAN and pool
both companies' cashflows, as Europe's biggest carmaker eyes
savings by integrating MAN more closely with its other truck
brand, Scania of Sweden.
While the vote's outcome is a foregone conclusion,
shareholders are expected to criticise a VW-instigated
management reshuffle that sidelined MAN's chief executive and
eventually led to the February departure of its chief financial
MAN investors have in recent years been critical of the
domineering approach taken by Volkswagen and its Chairman
Ferdinand Piech, the softly spoken but powerful patriarch who
runs both companies' supervisory boards.
During a profit and loss transfer agreement, known more
generally as a domination agreement in Germany, minority
shareholders are given a chance to sell their stock or accept
annual cash compensation for the loss of future dividend
Volkswagen is offering 80.89 euros per share for those who
want to exit, otherwise they will receive 3.07 euros per share
Few are likely to tender, however, since the shares are
changing hands at nearly 84.50 euros. This suggests investors
are speculating the company will ultimately sweeten its offer if
they hold out for a better deal.
Shareholders will also have the chance to press Piech and
his management team around CEO Georg Pachta-Reyhofen about
Tuesday's warning, in which MAN said profit margins will be
significantly lower this year due chiefly to problems at its
Diesel & Turbo division.
According to MAN, the warning will not affect VW's offer to
MAN shareholders are also set to vote on management's
proposal to pay a 1 euros per share dividend for the past
(Reporting by Irene Preisinger; Writing by Christiaan Hetzner;
Editing by David Holmes)