Munich - Talks on a merger between Scania of Sweden and the MAN truck company of Germany have collapsed, a news magazine reported Saturday. The two companies and Volkswagen had called off negotiations with no date for any new meeting, said the Munich-based weekly Focus. The issue containing the story is to go on sale Monday.
One executive involved in the talks was quoted saying there was no chance of reaching agreement. Even a cooperation arrangement falling short of a merger could not be agreed.
The report said Scania chief executive Leif Ostling had been the key obstacle from the German point of view, imposing conditions unacceptable to Volkswagen, such as siting the headquarters in Sweden.
Volkswagen sought leadership of the venture and offered its own commercial-vehicles business as part of it.
Focus said MAN chief executive Hakan Samuelsson met his fellow-Swede Ostling one on one in a vain bid to settle the dispute.
Scania had been supported by its second-largest shareholder, Investor, controlled by Sweden's Wallenberg family. Ferdinand Piech, the German businessman who chairs the Volkswagen and MAN supervisory boards, had also failed to win over the Wallenbergs, the report said.
Focus said Piech was reluctant to mount a hostile takeover of Scania although VW and MAN jointly control 51 per cent of its shares, since a merger would only offer benefits if it was a friendly one.
