A lot of people in the automotive industry considered this partnership as being the deal of the century. Tognum’s supposed takeover by German automotive manufacturing giant Daimler AG in partnership with Rolls Royce was derailed by an unexpected message from the fellow German company over the weekend.
Daimler shares that the duo is planning to extend almost 24 euro for each share of Tognum’s stocks, an amount that is actually already 30 percent higher than Tognum’s closing price in XETRA on March 4, exactly one day before they publicly announced the planned takeover.
Tognum’s response, however, was a surprise for everyone involved in the partnership. Management says that the amount isn’t enough to cover a takeover, much less is it “appropriate” and that they will advice shareholders not to accept it in spite of the public announcement. A statement from Tognum reads that “the offer price notably fails to reflect the capital expenditure carried out in recent years and the growth prospects for the Tognum group.”
Daimler AG and Rolly Royce, meanwhile, gave their own response saying that the “offer we have made has a compelling industrial logic and the combination of Tognum with the Daimler and Rolls-Royce joint venture represents the best prospect for accelerating long-term growth and is in the best interest of Tognum, its customers, shareholders and employees.”
Source: Auto Evolution