Investment banks' Scania suggestions 'overblown'

The president and chief executive of Swedish truckmaker Scania has stated that he believes that investment banks are overestimating the cost savings offered by a merger with German rival MAN.

Leif Oestling suggested in a statement to press and analysts that platform harmonization, which was needed to ensure significant savings, was not likely before 2014-2015.

"Something can be taken out with regards to sourcing, but investment banks are overestimating the amounts," he explained. "It would take a rather long time to get savings."

Speaking at a conference on Scania's third quarter results, Mr Oestling added that loss of revenue in the marketplace posed a risk during a merger, potentially harming cost savings, Forbes reports.

Scania is currently resisting a hostile takeover attempt by MAN and claims that the offer underestimates the firm's true value. MAN, the third largest truckmaker in Europe, has purchased over 14 per cent of Scania voting rights.

Volkswagen, which is the largest shareholder in MAN and owns a 34 per cent stake in Scania, has given the two companies a four week deadline to reach a solution on the merger plans and will support the move if it is backed by a majority of shareholders.

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