6

Jan

Porsche increases direct stake in VW to more than 50 percent

Posted by galardo  Published in Porsche

Porsche has been quickly amassing stock and options in Volkswagen, but the automaker finally pushed its direct ownership in VW to over 50 percent (from 42.6 percent) with the purchase of an additional $8.49 billion in stock. Porsche had acquired 74.1 percent of VW in combined stock and options, but the automaker needed to increase its share for direct ownership.

Porsche had previously announced that it was delaying its majority acquisition due to the economic conditions that are plaguing each automaker.

Shares in VW had skyrocketed late last year as a result of the planned takeover.

According to German law, Porsche will now be obliged to make a takeover offer to Swedish truck manufacturer Scania, which was once part of the Saab-Scania group until the automaking division was taken over by General Motors. VW owns about 69 percent of Scania’s voting shares, yet analysts predict that the offer will be perfunctory and not likely to be followed up on by Porsche.

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Source: www.leftlanenews.com