Tuesday, January 6, 2009

Report : Porsche increases its share in Volkswagen to more than 50%; but still does not control the company

Last October, Porsche had 42% of VW's stake. Now though, Porsche has finally raised its stake in Volkswagen to more than 50% (50.7% to be exact), leading to a mandatory takeover of the largest German automaker. According to Reuters, the additional 8% stake was worth about 6.1 billion euros ($8.49 billion USD) on the stock market on Monday.

Porsche originally planned to increase its stake over 50% by the end of 2008, but due to a massive short squeeze in late Oct., Volkswagen share prices rocketed, so Porsche had to wait a little bit more.

However, Porsche still does not have a controlling interest in VW. According to German law, control of a company requires a 75% share of the vote at a stockholder meeting. So Porsche’s CFO Holger Haerter said that Porsche is looking to increase its stake in Volkswagen AG to 75% later this year.

So does that mean that by the end of 2009 , Porsche will take over VW completely ? Does that mean that Porsche's 911 and Audi's R8 will become brothers ? Lets wait and see for what Porsche is preparing.

Source: [Reuters]

No comments:

Advertise with us