Rolls-Royce and Daimler open bid talks with rival

City A.M. Reporter
ROLLS-ROYCE and car group Daimler and British may make a joint bid for German enginemaker Tognum, in a deal sources said could be worth €3bn (£2.6bn).

Shares in Tognum, which was formerly owned by Daimler, closed up 23 per cent at €22.77 on the news yesterday.

“Daimler confirms that together with Rolls-Royce, it is in discussions about the possibility of acquiring the majority of Tognum in equal shares,” Daimler said.

The UK enginemaker and Daimler added they were in talks with Tognum, which may not lead to a sale. Sources close to the talks said Daimler was willing to consider a price of about €24 per share – almost 30 per cent above Friday’s closing price – whereas Tognum was pushing for more.