Rolls-Royce To Place Offer For Wartsila
Westminster-based British Engineering firm Rolls-Royce is touted to make another bid for the Finnish power plant and ship engine manufacturer Wartsila, according to Helsingin Sanomat newspaper, citing sources privy to the discussions.
This comes barely two weeks after the first round of takeover talks collapsed.
When contacted, Rolls-Royce did not respond to emailed request for an opinion, while Wartsila spokesman declined to comment.
However, Wartsila had earlier confirmed to Reuters that Rolls-Royce is interested in taking over its business.
According to the newspaper report, Rolls-Royce intends to buy the Finnish firm for at least €50 per share in a deal that would value the firm at around €9.9 billion ($13.4 billion).
Wartsila’s shares closed at €40.68 on Monday trading.
The aircraft-engine maker is interested in Wartsila because of its prowess in marine business, such as ship design, which would help strengthen its own marine unit.
Wartsila netted revenues of €4.7 billion, which is nearly $6.4 billion in 2012, and had 18,900 employees spread across 70 countries.
In comparison, Rolls-Royce made combined revenue of £6.13 billion. Its energy and marine businesses made revenues of £1.73 billion ($2.85 billion), while the civic and defense aerospace businesses had combined revenues of £4.4 billion
Wartsila is also represented in the UK market through a century-old oil & gas and marine specialist Hamworthy, which is based in Poole, Dorset.
The largest shareholder in Wartsila is a joint venture of Investor AB, an investment arm of Wallenberg family of Sweden, and Fiskars, which is owned by Ehmrooth family of Finland.