November 7, 2006 9:30 AM, EST

Investor AB Increases Scania Share

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nvestor AB, the second-largest shareholder in Swedish truck maker Scania, on Tuesday announced it increased its stake in the company to about 20% of Scania’s rights.

Investor previously held a 19.3% voting stake.

"We have increased our stake in Scania to mark our continued belief in the company's strong prospects and our commitment to find the best industrial solution for Scania,” said Börje Ekholm, chief executive officer of Investor.

The Swedish investment firm has the second-largest voting stake in Scania, behind Volkswagen AG.

Investor and Scania have repeatedly rebuffed attempts by Germany’s MAN and Volkswagen to combine Scania’s business with their own heavy-duty truck operations, saying the takeover offers undervalue the company.

Investor’s decision to increase its voting stake follows MAN’s purchase of a 14.3% stake in Scania in early October. (Click here for previous coverage.)