October 4, 2006 10:40 AM, EDT

Volkswagen Buys 15.1% Stake in MAN

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olkswagen AG has purchased a 15.1% stake in MAN AG, blocking the German truck maker’s attempt to acquire Swedish rival Scania, Bloomberg reported Wednesday.

Volkswagen said in a statement that the $1.9 billion purchase is intended to help Scania and MAN reduce costs by sharing parts and service centers, Bloomberg reported.

In September, Volkswagen argued that MAN AG should abandon its hostile takeover bid for the Scania in favor of a deal that would combine MAN and Scania with the automaker’s own heavy-duty truck manufacturing business in Brazil. (Click here for previous coverage.)

MAN said it views Volkswagen’s purchase as a positive step in the truck maker’s efforts to buy Scania, Bloomberg said.

Volkswagen and Swedish investment firm Investor AB, who together control about 53% of Scania’s voting rights, rejected in September a $12 billion takeover offer from MAN.