Registration Filed For Sale Of Volvo P&U Shares

Pharmacia & Upjohn has confirmed that, at Volvo's request, it has filed a registration statement with the US Securities and Exchange Commission in relation to the divestment of shares in the company held by Volvo.

Volvo has a 13.7% stake in P&U, representing around 69.7 million shares. It is understood that the registration made by P&U at the SEC will allow Volvo to sell up to 52.9 million shares; around 66% of its total stake. In a Wall Street Journal report, analysts suggested that the market could not swallow the almost 14% stock divestment in one go. However, Volvo has made a commitment to severe its links with P&U by the end of the current year.

One analyst said that P&U must be happy to say goodbye to its major shareholder, as Volvo has already hurt the deal that management wanted. It will give the company more control over its own destiny.