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This case describes the series of events surrounding shareholder opposition to the proposed merger between Volvo and Renault. The proposed merger had been preceded by a strategic alliance; the industrial logic for the merger seemed sensible. The task for the student is to assess why the shareholders resisted the merger, causing Volvo''s board to withdraw the merger proposal. The most important factor was the presence of an unusual control option to be granted to the French government, which rendered the proposal unpalatable to Swedish shareholders. Other factors included cultural differences and enmity toward Volvo''s flamboyant chairman, Pehr Gyllenhammar. This case may be taught alone or as an epilogue to the companion case, ''AB Volvo/Regie Nationale des Usines Renault SA'' (UVA-F-1088).