September 18, 2000 10:06 AM, EDT

Scania Rejects MAN Buyout Offer

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wedish truck maker Scania has rejected a $12 billion buyout offer from Germany’s MAN AG, Bloomberg reported Monday.

Scania’s board of directors was unanimous in its decision to reject MAN’s offer, the truck maker said Monday in a statement.

Swedish investment firm Investor AB, which controls about 19% of Scania’s voting rights, also said MAN’s offer was too low, according to Bloomberg.

Germany's Volkswagen AB, which controls about 34% of Scania’s voting rights, declined to comment on the decision, Bloomberg said.

Meanwhile, French automaker Renault SA has reached a deal with MAN to sell its stake in Scania for an undisclosed price. Renault controls about 5% of the Scania's voting rights, Bloomberg reported.

MAN announced its $12 billion bid for Scania last Thursday. If completed, the deal would create Europe’s largest manufacturer of heavy-duty trucks. (Click here for previous coverage.)