Tognum eyes higher price as outlook beats forecasts

 
City A.M. Reporter
SPECIALITY engine maker Tognum has unveiled a full-year outlook that beat expectations, as it aims to elicit a higher takeover offer from its suitors Daimler and Rolls Royce Group.

According to sources, the company would accept a sweetened bid valuing it at €3.55bn (£3.1bn).

Tognum said yesterday it expects 2011 revenue of around €2.9bn (£2.5bn) and adjusted earnings before interest and tax of around £300m.

Tognum added that first-quarter adjusted earnings jumped 68 per cent to €71.9m.

Daimler and Rolls Royce on 15 April stuck to their €3.2bn offer for Tognum, dismissing the German diesel engine maker’s assertion that it was too low.

Tognum’s chief executive Volker Heuer said last week that Tognum would comment further once it received a written offer.