Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Businessweek Archives

Volvo: Jitters At The Altar


Up Front

VOLVO: JITTERS AT THE ALTAR

The proposed Volvo-Renault merger has developed engine trouble. The problem: A group of Volvo shareholders objects that the deal favors French-government-owned Renault, which would get 65% of the combined company. The dissidents say that improving fortunes at the once-ailing Swedish outfit entitle it to a bigger share. The much larger Renault also bugs them by insisting on a proviso that allows it to block purchases of more than 10% of the new company's shares.

A showdown is looming at the Volvo stockholders' meeting on Nov. 9. The dissidents control just 29% of the vote, but they're hoping to enlist institutional shareholders, a passive bunch in Sweden. Chances of success? In 1979, similar unrest aborted Volvo's merger with Norwegian oil company Statoil.EDITED BY LARRY LIGHT AND JULIE TILSNER Ariane Sains


LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus