Daimler and Rolls launch Tognum bid

Marion Dakers
ROLLS ROYCE and Daimler formally laid out their takeover bid for motor and turbine maker Tognum yesterday, telling shareholders their €3.2bn (£2.8bn) deal offers the chance for strong future growth.

The companies, which announced their interest in March, said investors would retain their rights to a 50 cents dividend for 2010 on top of the €24 a share offer – adding an estimated €65m to the deal’s value.

ING holds nine per cent of Tognum shares, and said this week it would be “extremely disappointed” if the firm’s management recommended that investors accept the offer.

The prospective buyers have set a threshold for the bid to succeed of at least 50 per cent of Tognum’s share capital plus one share. That includes Daimler’s 28.4 per cent stake in Tognum.

The companies said their offer represents a 30 per cent premium to Tognum’s share price before the takeover interest was made public.

Tognum shares closed 0.5 per cent up at €25.70 yesterday - more than €1 above the offer price.

Rolls Royce also announced the sale of engines for nine Boeing 787 Dreamliner planes yesterday, continuing its order spree for the Trent 1000 engine after seeing off competition from General Electric. Rolls has sold the engines to low-cost carrier Norwegian, plus a long-term service contract worth $450m (£275.9m).

The firm has won engine orders for six of the last seven Dreamliner deals.