Latest Automotive News

Subscribe in a reader





Swedish private equity firm buys into truckmaker Volvo

Email   small font medium font large font

Google
 
Web AutoNews24h.com
A Swedish private-equity fund said Wednesday that it has five per cent of the voting rights in Swedish truckmaker Volvo AB and will seek membership on the company's board to force a restructuring.

In a statement to the Stockholm stock exchange, Swedish investor Christer Gardell's Cevian Capital II Master Fund LP announced it had bought 50,000 of series A shares in Volvo, bringing its total stake to five per cent of the votes.

The move confirmed months of speculation that private equity companies were looking to make a move on Volvo.

``Volvo is fundamentally undervalued,'' Gardell said. ``(Volvo chief executive) Leif Johansson and his team has done a great job, but that hasn't really showed through in the valuation.''

Gardell said Cevian's five per cent holding will give it a place on Volvo's election committee, and that it will seek a seat on the board of directors. ``We always go in actively (in our investments), so that is the ambition,'' he said.

Gardell said his US$2-billion fund, which is also backed by U.S. investor Carl Icahn, is looking to force through a restructuring of the company, but declined to disclose details.

``I don't want to share my thoughts on that right now,'' he said. ``That is something we want to bring up with the chairman.''

Analysts say Cevian's likely aim is to force Volvo to distribute more of its 19 billion kronor ($2.62 billion) in cash to shareholders.

The five per cent voting-rights stake includes shares owned by London-based Parvus Asset Management LLP, which has given Cevian the right to vote for its shares in Volvo.

Receive the latest automotive news by email!

Enter your email address:


Related news
STOCKHOLM (AP) _ Swedish truck and bus maker AB Volvo said Friday its fourth-quarter profit fell 15 per cent to 2.99 billion kronor ($388 million US) as higher ...
Volvo AB posted a 24 per cent increase in fourth-quarter profit Friday as sales growth stalled for the world's second-biggest truckmaker, missing analysts' forecasts. But Volvo shares rose as the ...
Sweden's AB Volvo said Monday it will spend about 500 million Swedish kronor (US$69 million) to raise its stake in Japan truck maker Nissan Diesel Motor Co. to 19 per ...
Truck maker A-B Volvo has posted a 23 per cent increase in first-quarter earnings. The better-than-expected results sent Volvo shares soaring nearly seven per cent on the Stockholm exchange. Volvo, which sold its car ...
STOCKHOLM, Sweden (AP) _ Swedish bus and truck maker A-B Volvo says it plans to delist from the Nasdaq exchange because of insufficient trade. It also announced today it will also deregister its ...
Swedish truck-and-bus maker Volvo AB said today it would recall 125,000 trucks in North America because of a fire hazard. Tommy Kohle, a spokesman for the Goteborg-based company, said it would recall the Volvo ...
The Swedish tax authority said Wednesday it has ordered Volvo Cars AB to pay about US$37.2 million in back taxes, saying it filed incorrect income statements for 2005 and 2006. ...
A Swedish court on Friday granted permission to Volvo Cars, a unit of Ford Motor Co. (NYSE:F), to increase its car production to 350,000 vehicles a year from a previous ...
Daimler AG, which sold off most of its Chrysler division earlier this year, has spent US$5.1 billion to buy back more than 49.9 million shares, according to the automaker. The Stuttgart-based maker of ...
From Daimler-Benz to DaimlerChrysler and now ... just plain old Daimler. Many shareholders are sighing in relief as DaimlerChrysler goes through the formality of shedding ``Chrysler'' from its letterhead _ a final farewell to ...

Best Investment Newsletter

- 46% in 2008

- invest in the best performing US stocks only and sell them when the uptrend is over

- very easy to follow, simple buy/sell signals

- no need to have investing or trading experience

Find More Now!


Swedish private equity firm buys into truckmaker Volvo
> © 2006-2017 AutoNews24h.com except where otherwise noted