VW Makes Low Offer for MAN Shares

Volkswagen AG has offered €80.89 per share for the 24.97% of German truckmaker MAN SE that it doesn't already own.

VW is seeking a so-called "domination agreement" that would allow it to gain full access to MAN's finances. The pact would enable the auto giant to fully merge its truck operations, which include Sweden's Scania AG, with those of MAN. VW has been pursuing the three-way merger for more than six years.

The offer, which is 7% below MAN's previous closing price, will probably be unattractive its shareholders, according to analysts. They say MAN investors are likely to sue in hopes of obtaining a higher price. Under the current proposal, stockholders who choose not to sell to VW would be guaranteed an annual dividend of €3.07 per share.

The terms are subject to a fairness test and the approval of MAN's board. MAN shareholders will vote on the offer at the company's annual meeting on June 6.