German truck-maker MAN has dropped its hostile €9.6bn (£6.48bn) bid for Swedish rival, Scania, in return for "a friendly solution through negotiation". The decision means Volkswagen is closer to realising a three-way alliance with MAN and Scania to create Europe's biggest trucks business.

Bernd Pischetsrieder, chief executive of VW, which controls 34% of voting rights at Scania, and has a 15% stake in MAN, welcomed the move, giving the three sides four weeks to reach a deal on cost-savings, and confirming VW would inject its Brazilian heavy goods business into the alliance.