Investor AB Ups Its Stake in Scania

Related Stories Volvo increases share in rival Scania. (April 30) (Note: To return to this story, click the "Back" button on your browser.)

STOCKHOLM, Sweden (AP) — Investor AB, the investment arm of Sweden's powerful Wallenberg family, has increased its stake in Swedish truck- and bus-maker Scania to 49 percent, the company announced Monday.

The announcement came just days after vehicle-maker Volvo announced two shares purchases that raised its stake in its Swedish rival to 20 percent of the voting shares.

Investor said it raised its voting share by trading selling some 6.2 million B shares — which carry one-tenth of a vote apiece — and buying 8.5 million A shares, with one vote apiece.

Volvo stunned the Swedish business community in January with the announcement that it had bought 13 percent of the shares in Scania and said it was seeking to merge. Scania's chief Leif Oestling had decribed that move as "close to hostile."

Volvo and Investor, which then held 45 percent of the votes in Scania, entered discussions, but the talks broke off this spring.

Volvo's move for Scania came just two weeks before Volvo sold its small but prestigious passenger car division to Ford Motor Co.

Volvo said part of the reason for the sale was to allow the company to concentrate on its other business areas, including trucks and buses.

The car division sale for $6.45 billion gave Volvo a cash infusion that some analysts have speculated would make Volvo an attractive takeover target.