Volvo Truck Shares Up
Shares in world number two truck maker Volvo rose more than 4 percent on Thursday on a report a U.S.-based hedge fund aimed to drum up interest in a bid or pressure it for more shareholder payouts.
Bid speculation has surrounded Volvo in recent years due to its strong balance sheet and the expectation main shareholder
Renault might want to sell its 20 percent stake, not seen as ac core holding. However, Renault denied such talk.
Analysts saw an outright bid as less likely than more shareholder pressure, saying Volvo shares would have risen much higher if investors took the buyout idea seriously.
Financial daily Dagens Industri quoted unidentified sources as saying Swede Thomas Sandell, who is based in New York and runs Sandell Asset Management, was trying to drum up interest among Swedish investors for a bid.
According to the newspaper, if there was no bid, Sandell wanted to put pressure on Volvo’s management and board to increase shareholder handouts.
Sandell, who holds a low profile in Sweden, has been involved in several U.S. corporate tussles.