Volvo Launches Controversial Bid for Merger With...
From Times Staff and Wire Reports
Volvo Launches Controversial Bid for Merger With Renault: The Swedish auto maker issued a prospectus for its proposed merger with French state-owned Renault amid a swelling storm of criticism. Some employees threatened to vote their Volvo shares against the plan at a special shareholders meeting set for Nov. 9. Two influential Swedish newspapers, Svenska Dagbladet and financial paper Dagens Industri, ran editorials slamming the deal announced in September. Svenska Dagbladet said the deal would amount to French privatization of a Swedish national asset. Under the merger, AB Volvo and Regie Nationale des Usines Renault would form a joint operating company, Renault-Volvo RVA, with Renault controlling 65% and Volvo 35%.
