Problems upset big deal by Volvo
NZPA-Reuter Stockholm
Last-minute problems appear to have forced the Swedish vehicle maker, Volvo, to cancel an announcement on a planned SUSSOOM (SNZ93OM) linkup with a biotechnology group, Fermenta. A spokesman for Volvo, Scandinavia’s largest corporation, retracted information given on Friday that a statement would be released.
Industry sources quoted company officials as say-
ing that talks between the two companies were continuing in Stockholm, but appeared deadlocked.
Volvo said last week that it no longer considered itself bound by a January 8 agreement which would make Fermenta Sweden’s leading pharmaceutical firm.
The basis for the deal had been fundamentally altered, it said. Stockbrokers said Volvo was probably referring to the resignation of Fermenta’s Egyptian-born
president, Mr Refaat Sayed, who has admitted lying about his academic credentials, and the plunge in the firm’s shares.
This would make the link-up more costly for Volvo if the terms agreed on January 8 were to stand. Fermenta still considers last month’s deal to be binding. Trading in Fermenta stock has been suspended until further notice.
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Press, 26 February 1986, Page 35
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177Problems upset big deal by Volvo Press, 26 February 1986, Page 35
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