M&A

23 November, 2009

UPDATE 2-Future uncertain at Germany's MAN after CEO exits

* Swedish CEO leaves with immediate effect

* Moves comes at his own request, MAN says

* Head of diesel business named interim CEO (Writes through)

By Christiaan Hetzner and Irene Preisinger

FRANKFURT/MUNICH, Nov 23 (Reuters) - Hakan Samuelsson abruptly resigned as chief executive of German truckmaker MAN (MANG.DE) on Monday, exposing the 250-year-old company controlled by Volkswagen (VOWG.DE) as a potential break-up candidate.

The Swedish chief executive, who was unloved at VW's majority-owned truckmaker Scania (SCVb.ST) ever since he launched a hostile bid for the unit, where he once worked, is leaving at his own request with immediate effect, MAN said.

This could add momentum to VW's drive to consolidate its three commercial vehicle brands under one roof. VW Chairman Ferdinand Piech had said in mid-September that the truck industry crisis was accelerating these efforts.

"Samuelsson hopes that his decision will help the MAN Group to quickly devote all of its attention to its core business and its further development," MAN said in a statement. "He is convinced that there should be a fresh start at the highest level of the company."

The most powerful figure in the German automotive industry, Piech rid himself of then-CEO Bernd Pischetsrieder during a meeting of the VW board's steering committee. Piech was also the driving force behind dismissal of Porsche SE (PSHG_p.DE) CEO Wendelin Wiedeking in July.

A spokesman for Volkswagen declined to comment.

UNKNOWN FACE

Samuelsson had enjoyed an exemplary track record as CEO of MAN. Despite the group's tradition-rich history, the Swedish CEO radically changed the face of MAN by departing from low-margin or loss-making businesses.

He sold off a controlling stake in MAN's printing press business and a majority in Ferrostaal, purchased Volkswagen's Brazilian heavy truck unit, took a 25 percent stake in China's largest truckmaker, Sinotruk (3808.HK), and mapped out a merger of its two other industrial divisions, Diesel and Turbo.

Shares during his tenure more than doubled since he took over in January 2005, easily outperforming the 36 percent gain in the German blue chip DAX index .GDAXI.

Instead of either trucks chief Anton Weinmann or finance chief Karlheinz Hornung, the board's steering committee chose the lesser-known head of MAN's diesel engine business, Georg Pachta-Reyhofen, as interim CEO. (Reporting by Christiaan Hetzner and Irene Preisinger in Munich; Editing by Richard Chang) ((christiaan.hetzner@thomsonreuters.com; Reuters Messaging: christiaan.hetzner.reuters.com@reuters.net; + 49 69 7565 1249))

Source: http://www.reuters.com