Rolls-Royce and Daimler launch Tognum bid

9th Mar 2011 07:29

Daimler and Rolls-Royce have confirmed they intend to take over German-listed engineer Tognum through a tender offer by a joint venture company.Daimler and Rolls-Royce will offer Tognum shareholders €24 per share in cash representing a total consideration of approximately €3.2bn, about 30% above Friday's closing price. Daimler currently owns 28.4% of Tognum."The proposed joint venture, comprising of Tognum and Bergen, the gas and diesel medium-speed engine business from Rolls-Royce, will offer significant advantages to Daimler, Rolls-Royce and Tognum," the companies said in a statement."The partners intend to maintain the current manufacturing sites and are confident that the growth strategy will secure jobs and lead to further opportunities," the statement added.Tognum makes engines, propulsion systems and components and "off-highway" applications products.