VW to Hike Stake in Scania?

Volkswagen AG may seek to accelerate the integration of its Scania and MAN commercial truck units by hiking its stake in the Swedish company, says The Wall Street Journal, which cites unidentified sources.

The Journal says it would cost VW more than €4 billion to buy out Scania's minority shareholders. The newspaper and Bloomberg News both cite unnamed sources who say VW has made no decision to pursue a purchase of any or all of Scania's outstanding shares.

VW already owns 71% of Sweden's Scania and 75% of Germany's MAN. MAN also holds a 13% stake in Scania. VW has been trying for years to push more collaboration between the two companies.

But on Tuesday the Swedish Shareholders' Assn. said it will ask an independent examiner to determine if VW's ownership of both companies is a conflict of interest that hurts Scania's value and ability to compete. The group points to a 7% drop in last year's net income and a proposed 16% cut in the Swedish company's dividend as evidence of VW's interference.