Porsche raises stake in VW to 50%
Porsche is continuing to wag the dog by upping its stake in VW to over 50%. The move, which cost Porsche $8.49 billion, adds another 8% to the German automaker's ownership stake. The move to 50% was supposed happen late in 2008, but a short squeeze temporarily skyrocketed VW stock from 210 Euros to over 1,000, delaying the move. Porsche's increase in VW stake also gave the iconic automaker indirect control of Swedish truckmaker Scania. Swedish law requires a mandatory takeover offer, but since Porsche has no interest in truck tech, it will only offer the minimum amount required.
The much smaller Porsche has been deliberate in its bid to own the much larger VW, and its plans don't end at 50%. A Porsche spokesman told Automotive News that, pending market conditions, the company intends to own a 75% stake by the end of 2009. And to think Porsche was once worried that its small size made it vulnerable to be taken over by other companies.
[Source: Automotive News - Sub. Req.]
