PORSCHE FINALLY TAKES OVER VOLKSWAGEN
Posted 6th January, 2009 in Porsche, Volkswagen | Leave a comment
German auto maker Porsche has said in a brief statement that by buying new Volkswagen shares, it “will thus increase its participation to 50.76% “of the group’s capital, compared with 42% before.
The Stuttgart company is planning to raise its stake to more than 75% this year, with which it expects to gain total control over the group. This would allow Porsche to seal a so-called domination contract giving it full financial control. The takeover sees a family-controlled company that annually makes 100,000 units take control of a national institution that churns out five million vehicles each year.
By Swedish law, Porsche is obliged to make an offer for outstanding shares in Scania, in which VW is the dominant shareholder. However, the sportscar company has indicated that there is no strategic interest in the truckmaker and the acquisition of its shares.
[Source: Yahoo]
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