More Volvo Merger Rumors
June 23, 1999
While one industry observer is reporting that merger talks between Navistar and Volvo are "dead on the vine," DaimlerChrysler is denying a report that it is trying to buy the Swedish commercial vehicle manufacturer.
Stark's News Service reports that talks have broken off between Volvo and Navistar because the value of the Chicago truck and engine maker was higher than Volvo believed was reasonable. Extensive media coverage of the possibility of a merger apparently sent Navistar's stock even higher.
Meanwhile, DaimlerChrysler, also the parent company of Freightliner, denied a report that it is getting ready to offer at least $17.8 billion for AB Volvo after recent talks between the two companies. Volvo officials are not commenting on the report, which appeared in the Swedish business daily Dagens Industri.
AB Volvo, which is still sitting on a pile of cash from selling its car division to Ford, has also tried to buy Scania. The Financial Times reports that German auto maker Volkswagen is also in talks to take over the truck manufacturer. Volvo currently owns 21.6% of Scania.