FRANKFURT Reuters -- Volkswagen is convinced that its 2.9 billion euro 3.3 billion offer for France's Europcar, made as part of the consortium, reflects the firm's value, a senior executive said, pouring cold water on hopes for a higher bid.
Christian Dahlheim, Volkswagen's head of group sales, and one of the main architects of the deal, told Reuters that the takeover premium of 30-40% was a very attractive offer with a takeover premium of 30 -- 40%.
Volkswagen is offering a 0.50 euro per share in Europcar, which could be topped up by 0.01 euro per share if 90% of shareholders take up the bid, along with asset manager Attestor Limited and Dutch mobility group Pon Holdings BV.
The shares in Europcar are currently trading at 0.508 euros apiece.
Investors representing 68% of Europcar's shares have agreed to tender their stock, which would give the consortium control over the car rental group under French takeover laws.
Dahlheim said that the acquisition of Europcar is our preferred option.
He said the consortium, Green Mobility Holding, is still working on a squeeze-out to implement its strategic plans for the company.
It plans to sell lucrative mobility services by leveraging Europcar's vast international network in more than 140 countries, including a fleet of around 350,000 vehicles.
Dahlheim said that they are buying Europcar because they believe that we can develop it to a good basis for an expanded mobility offer, and he expects European antitrust authorities to approve the transaction at the beginning of next year.
Dahlheim said that investments for future growth will be funded by Europcar's cash flows.