Tognum could hold out for improved bid

Marion Dakers
ENGINE-MAKER and takeover target Tognum posted a 31 per cent rise in adjusted net profit to €159.2m yesterday, helping to highlight questions about Rolls Royce and Daimler’s €3.2bn (£2.75bn) joint offer plans.

Tognum’s management is hoping for Rolls and Daimler to raise their €24 per share bid, according to sources yesterday. “Everyone would be satisfied with €27 per share,” one person said.

Tognum chief executive Volker Heuer declined to comment on the offer price, saying that the firm would respond once it has received a written offer, following Wednesday’s indicative 50:50 joint bid.

“At Tognum, all signs show we’re going for growth,” said Heuer. “With our balanced business portfolio and our proven growth strategy, we will benefit strongly in the current year from the recovery of our markets.”

Germany-based Tognum said revenues rose 1.4 per cent to €2.6bn as order intake rose 21.5 per cent during the year as industrial firms, particularly in the oil and gas sector, resumed spending on new equipment.

Rolls Royce declined to comment on the offer price, but said: “Tognum is a growing business, with a complimentary product set to our own. Their results are in line with our expectations and underpin the industrial logic of our proposed JV offer.”