VW Tightens Grip on Scania as Three-Way Merger Looms

ROUNDUP: Volkswagen Increases Stake In Sweden's Scania

By Simon Johnson and Irene Preisinger

STOCKHOLM/MUNICH (Reuters) - German car maker Volkswagen (VOWG.DE: Quote , Profile , Research ) boosted its stake in Swedish truck maker Scania (SCVb.ST: Quote , Profile , Research ) on Wednesday, stepping up the pressure for a three-way truck merger involving jilted suitor MAN (MANG.DE: Quote , Profile , Research ).

Volkswagen, Europe's biggest carmaker, is broker in the deal as it is top shareholder in both groups and, with MAN, now controls more than 50 percent of votes in Scania.

A deal could include VW's heavy truck business or entire commercial vehicles unit.

"The shareholdings in MAN and Scania aim to safeguard the strategic interest of the Group in the commercial vehicles business and are adequate for finding a friendly and mutually agreeable solution to realize the acknowledged high synergies," Volkswagen said in a statement.

VW said it had raised its holding in Scania to 35.31 percent of voting rights from 34 percent and now held 38.7 million A shares. It also has 20.03 percent of total share capital.

MAN, after its failed bid for Scania, has a 14.8 percent voting stake in Scania, meaning VW and MAN together control 50.11 percent of votes in the Swedish firm.

Scania shares, which initially showed little reaction to the news of the VW purchases, had climbed 4.7 percent by 1305 GMT.

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