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Piech to join MAN's Board...Scania-MAN merger to follow

In the news: Volkswagen AG Chairman Ferdinandmerger  with  Scania  is  high.
Piech was reported to be planning of joining
MAN AG's supervisory board. This will enableThere are two aspiring candidates who are
Europe's largest automaker to push throughseen to replace Joachim Milberg -- Bayerische
with their plan to create a three-wayMotoren Werke AG's supervisory board
combination with Swedish rival Scaniachairman, and Herbert Demel, chief executive
AB--that is according to sources who areof Magna Powertrain AG. Andreas Meurer,
familiar  with  the  situation.Volkswagen spokesman and Andreas Lampersbach
spokesman of MAN refrain from giving their
MAN has also announced that Piech and Rupertcomments  on  the  matter.
Stadler chief executive officer of
Volkswagen's Audi luxury unit are going to beIt is no secret that Piech who is at present
the candidates for board seats at the annualthe CEO of Volkswagen has also held the same
general meeting which will be held on May 10.role in Scania AB from May 2000 to April
2003. Europe's largest automaker, Volkswagen
It should be noted that Volkswagen---Europe'sis the largest shareholder of both Scania and
largest automaker and maker of qualityMAN. Piech is also occupying a seat on the
Volkswagen turn signal--- has increased itsboard of Porsche AG which is controlled by
stakes at MAN to 29.9 percent from 20 percentnone other than Piech and Porsche families.
which increases its power to influence thePorsche which has the highest profit margins
merger of its own truck division with Scaniaof any carmaker in the world owns 27.4
and MAN. And if ever Volkswagen succeeds withpercent of Volkswagen which strengthens Piech
its plan in merging the two truckmaker withposition  in  the  company.
its own it will become Europe's largest
truckmaker surpassing DaimlerChrysler AG andPiech was also the one responsible for
Volvo  AB.ousting CEO Bernd Pischetsrieder and replaced
him with his favorite protégé Martin
According to Stephen Pope, head of equityWinterkorn who was at that time the head of
research at Cantor Fitzgerald in London,Audi which is one of Volkswagen's most
"this gives a clear signal that Volkswagenprofitable  units.
wants to wield greater influence over this
business and extend its reach within theIt was last Oct. 4 when Volkswagen announced
commercial vehicle industry. Volkswagen alsothat it has purchased 15.1 percent of MAN's
clearly wants to dictate the strategy of anyshares as a "strategic move". The company has
merger." It was last September when MAN hasannounced a month later that it has increased
made a hostile bid for Soedertaelje,its holdings to around 20 percent and was
Sweden-based Scania but dropped the offer ongiven the privilege to increase its stake to
January this year. But with Volkswagen toas much as 29.9 percent.
control MAN the possibility of pursuing a



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