HELSINKI Jan 21 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.