Swedish truck maker Scania stood by its rejection of German rival MAN’s hostile bid, as it raised the prospect of further extra shareholder payouts and warned of job losses in Sweden. Scania’s second rejection of the 10.3 billion euro offer was the latest salvo in a long war of words between the Swedish company, backed by key shareholder Investor , and its unwelcome suitor.

Scania rejected the bid when it was first announced in October. This second rejection comes after MAN released its formal offer document and prospectus. “The board confirms that it continues to unanimously recommend Scania shareholders not to accept the offer ... The board of Scania is of the firm view that the offer from MAN substantially undervalues Scania,” it said in a statement.

A merged MAN-Scania would have become the European truck leader, better able to compete with global giants such as DaimlerChrysler and Volvo due to scale advantages in purchasing, spare parts distribution, customer finance and service networks.

Scania said a merger could yield possible long-term synergies but only if carefully executed and managed. The Swedish firm also reiterated its view that, because of strong guarantees for workers in deals between MAN and German unions, any job cutbacks would fall heavily in Sweden. MAN dismissed the idea of any reductions in production staff at Swedish sites.

Ultimately the deal will come down to the support, or lack thereof, from Scania’s two largest shareholders, Volkswagen and the Wallenberg family. VW supports the tie-up in principle but has left all options open in case MAN and Scania cannot agree on terms.