Czech train maker Skoda does not intend to take over Spain's Talgo
July 26 (Reuters) -Czech train maker Skoda said it does not intend to file a counter bid to take over Spanish rival Talgo TLGO.MC though it seeks to combine the two companies' industrial activities, according to a letter disclosed by Talgo on Friday.
"Our main objective is not to achieve control of Talgo. We do not intend to take the company private either," Skoda said in the letter sent to Talgo on Wednesday, but disclosed by the Spanish company only on Friday.
The Czech group, which is not related with the car maker owned by Volkswagen VOWG.DE, mentioned in another letter sent earlier this month a proposal for "business combination and industrial integration", without making any economic offer.
The first letter was meant to remain confidential, Skoda said in the second letter.
The first letter sparked speculation Skoda was preparing a bid for Talgo to counter the all-cash 619 million euro ($671.68 million) offer launched by Hungarian consortium Ganz-Mavag for all Talgo shares. The Ganz-Mavag offer has raised concerns in Madrid as the government considers Talgo is a strategic company.
In reaction to the first letter, Spain's stock market regulator had urged Skoda to make a formal offer at a higher price or drop its approach.
($1 = 0.9216 euros)
Reporting by Matteo Allievi, Editing by Inti Landauro and Michael Perry
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