HereForTheBeer: Crap - hotel internet ate my reply.
I don't know if it's a satchel charge or something else, and I don't think it shows up as part of the squad's ammo load. But get them to crawl close enough and they will try a very short-range bomb attack. You may have to change the squad's stance in order to get the guys to move in and attack instead of fleeing or seeking cover. And I usually had to click the target at least a few times to get them to attack.
Note that you can re-man the AT guns so long as the gun survives the encounter. And you can also capture enemy towed weapons in the same manner. Likewise, if at least one of the gun crew survives an attack, I believe you can use the supply truck to replenish the crew.
Blitz 1 and 2 handle squad resupply somewhat differently. This is outlined in another thread in this forum.
Personally, I found the Defend missions quite a bit more difficult. But they are also fun.
Thanks. I did make it through the mission finally. I haven't heard many good things about Blitzkrieg II.