BERLIN, July 31 (Reuters) - MAN SE's minority shareholders may win higher cash compensation from Volkswagen after a court on Friday ruled the parent has to raise the price for the rest of the company.
Volkswagen two years ago gained shareholder backing for a profit transfer and "domination" agreement with MAN after acquiring just over 75 percent of its voting stake.
Required by German law to offer to buy out minority owners, VW then proposed to purchase MAN's remaining stock for 80.89 euros a share. Investors opposing the deal would get an annual dividend of about 3 euros per share, the agreement said.
But a regional court in Munich ruled the offer should be raised to 90.29 euros, agreeing with minority shareholders who had requested a higher valuation of MAN.
The court demanded no changes to the proposed dividend.
"We are still convinced that results of the valuation are reasonable," VW said in response to the ruling. "We will decide on further steps when the written explanation of the verdict is available."
Munich-based MAN declined comment.
MAN shares were trading up 1.7 percent at 94.85 euros as of 1036 GMT while VW stock was down 1 percent at 183.05 euros.
VW took full control of MAN to speed up efforts to forge an alliance with Swedish trucks subsidiary Scania, as it pushes long-held ambitions to compete with global sector leaders Daimler and Volvo. ($1 = 0.9109 euros) (Reporting by Andreas Cremer and Irene Preisinger; Editing by David Holmes)