Volvo's China strategic stake offer spurned
23 August 2006
China National Heavy Duty Truck, the mainland's third-largest heavy truck maker, has spurned Volvo's offer to take a strategic stake in the company as it prepares for a US$500 million initial public offering in Hong Kong later this year, the South China Morning Post reported, citing market sources. Other multinational vehicle producers and investors had also approached the firm but were unlikely to get very far, the sources said. JP Morgan and China International Capital Corp are arranging the initial public offering. China National and Volvo, Europe's second-largest truck maker, founded a truck manufacturing joint venture called Jinan Huawo Truck, which makes three models of Volvo trucks, three years ago.