Business World

Tuesday 16 September 2014

VW eyes Scania

Published 22/02/2014 | 02:30

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Volkswagen will submit a voluntary tender offer to shareholders of Swedish truck division Scania worth €6.7bn as it aims to jump-start a stalled eight-year effort to forge Europe's biggest truckmaker.

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VW has spent billions of euros over the past decade on expanding stakes in Scania and its other trucks division MAN SE to reap cost savings and take on Daimler (DAIGn.DE), the world's biggest truck maker. The tender period will start on March 17 and end April 25, Wolfsburg-based VW said yesterday.

US TO SELL ALLY

Ally Financial hopes for an initial public offering of as much as $4.5bn next month, sources said, in a deal that would allow the US government to make a profit on its crisis-era bailout of the auto lender. Only the US Treasury Department, which owns 37pc of the former General Motors unit, is expected to sell stock in the IPO.

At the very least, Ally is expecting the US government will be able to sell $2bn worth of stock, which is roughly the money it still owes Treasury.

YELLEN RECESSION VIEW

Janet Yellen saw the US economy "at, if not beyond, the brink of recession" in January 2008, differing from the less gloomy view of Federal Reserve staff, according to transcripts of policy meetings.

Ms Yellen, now the central bank chair, spoke at the January meeting after the Fed staff reported that the economy wasn't in a recession, though the likelihood of a downturn was increasing.

UK RETAIL SALES DROP

UK retail sales fell more than economists forecast in January with the biggest drop in almost two years, led by lower demand at food and clothing stores. Sales including fuel plunged 1.5pc from December, when they surged 2.5pc, the Office for National Statistics said yesterday in London.

INSURERS' FLOOD WOES

Aviva, RSA Insurance Group, and Direct Line Group are poised to bear the brunt of losses from flooding in Britain that is estimated to cost the industry £1bn (€1.2bn).

Aviva, the UK's third-largest insurer by market value, is expected to incur the greatest absolute loss based on its market share, with RSA and Direct Line the most exposed from an earnings perspective.

FANNIE MAE DIVIDEND

Fannie Mae will pay the Treasury Department $7.2bn (€5.2bn) after posting an eighth straight quarterly profit, pushing total dividend payments above the $116.1bn of aid it received after the financial crisis.

Irish Independent

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