Renault repeats Volvo stake sale not on agenda

(chinatrucks.com, Jan.29, 2010)Renault (RENA.PA) shares surged in heavy volume on Thursday on renewed talk it could sell shares in the world's second-biggest truckmaker Volvo (VOLVb.ST), despite the French group repeating this was not on the agenda.

The departure of Volvo chairman Finn Johnsson earlier this month after a boardroom tussle rekindled talk that a major change in the company's ownership was in the offing. Moreover, Renault has said before its Volvo stake is not a strategic investment.

Renault shares rose 3.23 percent to 34.94 euros by 1403 GMT after earlier reaching 35.34 euros. Volvo shares were up 0.16 percent, giving it a market value of some $18 billion.

One banker told Reuters last week that Renault, Volvo's biggest shareholder, had decided to exit the Swedish truckmaker and that it was just a question of when. Renault held 21.8 percent of Volvo on at Dec. 31.

"During 2009, when (stock markets) continued to go upwards, it was hard to motivate a sale. We wouldn't be surprised if they made their exit," the banker said, adding that Renault would not sell its entire stake in one go.

A second banker said last week that Industrivarden (INDUa.ST), which holds 3.5 percent of Volvo, could be interested in buying shares from Renault.

After four hours of trading on Thursday, the volume of Renault shares represented 96 percent of the stock's 90-day average daily volume, while Volvo's volume represented 160 percent of the stock's average, compared with 45 percent for Europe's STOXX 600 index .STOXX.

A Renault spokeswoman said the sale of shares in Volvo was "not on the agenda", while Volvo declined to comment.

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