DJ MARKET TALK: Volkswagen's MAN Stake Buy Seen Cash Neutral

10/06/06 - Dow Jones Newswires

0954 GMT [Dow Jones] WestLB welcomes news that Volkswagen (VOW.XE) has taken a 15.06% stake in MAN (MAN.XE). Says the stake will put pressure on MAN to look for a friendly solution of merging MAN, Scania (SCV-A.SK) and VW's truck operations. Says VW will only need to bring in its Scania stake to get a blocking minority at the new MAN-Scania entity. Adds for its Brazilian truck operations, which are likely to be integrated in the merged company, VW will likely demand cash from MAN which should pay for the MAN stake buy. Adds the deal should thus be cash neutral for VW. Keeps at reduce with a EUR53 price target. Shares -0.7% at EUR69.20. (JUM)

 
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(END) Dow Jones Newswires

October 06, 2006 05:54 ET (09:54 GMT)

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