P.M. BRIEFING : Stock Halt Sparks Volvo Rumors
Stock trading in Volvo AG and two big drug companies was suspended in Stockholm today, prompting market speculation that the Swedish car maker is about to sell its pharmaceutical holdings to beef up its vehicle operations.
The other companies whose shares were halted were Pharmacia, in which Volvo has a 46% voting right, and Procordia, a state-controlled industrial conglomerate with a sizable pharmaceutical division.
Market analysts speculated that Volvo wanted to sell its stake in Pharmacia, which has been struggling to maintain profit growth, to Procordia.
Analysts said Volvo could use the proceeds to strengthen its car and truck operations, perhaps through a link-up with Renault of France.
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