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Tognum to agree Daimler-Rolls Royce’s $4.9 bn offer: source

Tognum to agree Daimler-Rolls Royce’s $4.9 bn offer: source
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First Published: Thu, Mar 10 2011. 06 54 PM IST
Updated: Thu, Mar 10 2011. 06 54 PM IST
Frankfurt:Industrial engine maker Tognum would accept a bid by Daimler and Rolls-Royce if it was sweetened to value the company at €3.55 billion ($4.9 billion), two people close to Tognum said.
The sources said a 13% top-up to the €24 per-share cash offer from German carmaker Daimler and British engine maker Rolls Royce would win over Tognum’s management.
“Everyone would be satisfied with €27 per share,” one of the people said on Thursday.
“(The offer) would have to be at least 10% more,” the other source said, signalling Tognum was hoping for an offer of at least €26.40 per share.
Tognum shares were up 2.6% at €25.55 by 1213 GMT, indicating investors were betting on a sweetened offer.
Tognum has so far said no agreement has been reached on an offer price. Its chief executive Volker Heuer said on Thursday the company would make further comment once it has received a written offer.
The company earlier on Thursday announced it was raising its dividend payment to shareholders to €0.50 per share, more than the €0.36 average estimate in a Reuters poll of analysts and said it saw its sales and margins rising in 2011 and 2012.
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First Published: Thu, Mar 10 2011. 06 54 PM IST