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March 26, 2007

Porsche seen acquiring VW

Porsche plans to increase its stake in Volkswagen to 31 percent, according to a report in leftlanenews.com. The move will force the famed sports car maker into making a formal bid to acquire all of VW, the Web site says, as German law requires Porsch to make a takeover bid if its stake in VW exceeds 30 percent.

Posted by at 12:57 PM to Companies | Permalink

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Porsche is doing this bid at this specific time, so that it will get rejected. Due to the recent run up in the stock price - the rules are that it can offer way below the current market stockprice (which it has) in the full expectation that it will be rejected.

Porsche wants closer collaboration, and effective control for the powerful Piech family, but it doesnt want 100 % of VW.

Because it went over 30% - German rules are such that if is obliged to submit a takeover bid.

Posted by: alan on March 26, 2007 6:51 PM

Porsche seen acquiring VW

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