Volkswagen shares hit by profit outlook and Scania plan

Volkswagen Golf on display Volkswagen wants to take full control of Swedish truck maker Scania

Related Stories

Volkswagen shares have dropped over 7% in early trading after it toned down its 2014 profit outlook late on Friday.

The German carmaker said its 2014 operating margin would be between 5.5% and 6.5%, compared with 5.9% last year.

At the same time, it said it wanted to take full control of Swedish truck maker Scania.

Volkswagen, which already owns 62.6% of Scania, has offered shareholders 6.7bn euros (£5.5bn) for the remainder.

It said taking full control of the division would allow it to save money and improve the business.

Volkswagen chair Martin Winterkorn said the offer was a "compelling price".

"This offer reflects the long-term strategic potential of fully integrating Scania within the Volkswagen Group," he added.

Volkswagen said the details of the offer would be made public on 14 March, while shareholders would have until 24 April to accept the deal.

Analysts at UBS said Friday evening's announcement had reinforced its "concerns about muted earnings growth", and it advised investors to sell the shares.

Separately, analysts at Barclays criticised the deal, saying Volkswagen's management was "focused on being big at the expense of shareholder returns".

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • Biting a cockroachBugs for dinner

    The 30-day worm, cricket and cockroach diet


  • The dress and Ludwig WittgensteinMind games

    What would Wittgenstein say about that dress?


  • Photo taken on November 18, 2010 shows a male elephant grazing at the Lewa Wildlife Conservancy, based in Isiolo, where Britain's Prince William and his girlfriend Kate Middleton were staying before the engagement while on holiday in Kenya last month.Polite prince

    The five elephants in the room during William's visit to China


  • JoAnne Chesimard and Luis Posada CarrilesFugitive fights

    Wanted men and women could hinder improved US-Cuba ties


From BBC Capital

Programmes

  • A bicycle with a Copenhagen WheelClick Watch

    The wheel giving push bikes an extra boost by turning them into smart electric hybrids

Try our new site and tell us what you think. Learn more
Take me there

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.