Porsche takes over Volkswagen
#1
Porsche takes over Volkswagen
I hope this is not a repost...
FRANKFURT (AFP) – German luxury sportscar maker Porsche has taken over Volkswagen, the biggest European car manufacturer, after purchasing more than 50 percent of VW shares, Porsche said.
Porsche said in a brief statement late Monday that by buying new VW shares, it "will thus increase its participation to 50.76 percent" of the group's capital, compared with 42 percent before.
The news sent Volkswagen shares rocketing up 13.48 percent in early afternoon trading on the Frankfurt stock market on Tuesday.
The takeover by a family-run company run by billionaire shareholders has been a culture shock for Volkswagen, a sprawling national institution seen as a model for cooperation between shareholders and unions.
Porsche launched its takeover bid in 2005, saying it would turn Volkswagen into a "normal" enterprise and incurring fierce opposition from the unions.
Porsche had initially planned to acquire more than 50 percent of VW's stock last year but was forced to delay the operation after the value of the shares soared amid frantic stock market speculation.
At one point, they traded for more than 1,000 euros (1,350 dollars) per share, making VW briefly the biggest company in the world by stock market valuation.
On Monday, VW shares closed at 254.74 euros, close to the range Porsche had set for itself of between 200-250 euros.
VW said in August that it had overtaken Ford to become the world's third biggest automaker behind General Motors and Toyota.
Porsche is now obliged by Swedish law to make an offer for outstanding shares in truckmaker Scania, in which VW is the dominant shareholder.
But Porsche will offer a minimum price for Scania shares and has no "strategic interest" in the company, the statement said.
Porsche, which makes the 911 sports car and Cayenne sport utility vehicle, plans to raise its stake in VW to more than 75 percent this year, with which it expects to gain total control over the group.
Having more than 75 percent would allow it to seal a so-called domination contract giving it full financial control.
In Germany, a minority investor that owns 25 percent of a company's shares can block strategic decisions, but in the case of VW that level is currently set by law at 20 percent, the amount owned by the state of Lower Saxony, where VW is based.
Porsche has challenged the so-called VW law and has received support from the European Commission, which has threatened to haul Berlin into European court again after a revised version of the law retained the 20 percent minority blocking threshold.
Porsche built up its stake in the much bigger VW through the use of stock options that allowed it to catch markets by surprise last year with the size of its holding.
VW's works committee is wary of the takeover however and of Porsche boss Wendelin Wiedeking, who has crossed swords with trade unions, which are extremely powerful at VW.
VW posted sales of 109 billion euros in 2007, while Porsche, which employs 11,600 workers, reported sales of seven billion euros in its 2006-2007 fiscal year.
The IG Metall trade union fears a Porsche takeover would lead to job cuts at German VW plants, despite assurances from Porsche that it is a long-term investor in the auto giant.
Source: http://news.yahoo.com/s/afp/20090106...eoverporschevw
ffpower says: Audi's plan of going up market might be ending as Porsche wouldn't want competition from the within.
FRANKFURT (AFP) – German luxury sportscar maker Porsche has taken over Volkswagen, the biggest European car manufacturer, after purchasing more than 50 percent of VW shares, Porsche said.
Porsche said in a brief statement late Monday that by buying new VW shares, it "will thus increase its participation to 50.76 percent" of the group's capital, compared with 42 percent before.
The news sent Volkswagen shares rocketing up 13.48 percent in early afternoon trading on the Frankfurt stock market on Tuesday.
The takeover by a family-run company run by billionaire shareholders has been a culture shock for Volkswagen, a sprawling national institution seen as a model for cooperation between shareholders and unions.
Porsche launched its takeover bid in 2005, saying it would turn Volkswagen into a "normal" enterprise and incurring fierce opposition from the unions.
Porsche had initially planned to acquire more than 50 percent of VW's stock last year but was forced to delay the operation after the value of the shares soared amid frantic stock market speculation.
At one point, they traded for more than 1,000 euros (1,350 dollars) per share, making VW briefly the biggest company in the world by stock market valuation.
On Monday, VW shares closed at 254.74 euros, close to the range Porsche had set for itself of between 200-250 euros.
VW said in August that it had overtaken Ford to become the world's third biggest automaker behind General Motors and Toyota.
Porsche is now obliged by Swedish law to make an offer for outstanding shares in truckmaker Scania, in which VW is the dominant shareholder.
But Porsche will offer a minimum price for Scania shares and has no "strategic interest" in the company, the statement said.
Porsche, which makes the 911 sports car and Cayenne sport utility vehicle, plans to raise its stake in VW to more than 75 percent this year, with which it expects to gain total control over the group.
Having more than 75 percent would allow it to seal a so-called domination contract giving it full financial control.
In Germany, a minority investor that owns 25 percent of a company's shares can block strategic decisions, but in the case of VW that level is currently set by law at 20 percent, the amount owned by the state of Lower Saxony, where VW is based.
Porsche has challenged the so-called VW law and has received support from the European Commission, which has threatened to haul Berlin into European court again after a revised version of the law retained the 20 percent minority blocking threshold.
Porsche built up its stake in the much bigger VW through the use of stock options that allowed it to catch markets by surprise last year with the size of its holding.
VW's works committee is wary of the takeover however and of Porsche boss Wendelin Wiedeking, who has crossed swords with trade unions, which are extremely powerful at VW.
VW posted sales of 109 billion euros in 2007, while Porsche, which employs 11,600 workers, reported sales of seven billion euros in its 2006-2007 fiscal year.
The IG Metall trade union fears a Porsche takeover would lead to job cuts at German VW plants, despite assurances from Porsche that it is a long-term investor in the auto giant.
ffpower says: Audi's plan of going up market might be ending as Porsche wouldn't want competition from the within.
#2
Lexus Champion
Join Date: Jul 2008
Location: Park Ridge IL
Posts: 2,485
Likes: 0
Received 0 Likes
on
0 Posts
Good News!
#3
Source: http://news.yahoo.com/s/afp/20090106...eoverporschevw
ffpower says: Audi's plan of going up market might be ending as Porsche wouldn't want competition from the within.
i'll look for that article i read in Excellence some issues ago
he didn't say it like that word for word but that's what he said.
he wants porsche to become a better sports car company so he green lighted the R8 to provoke porsche.
#4
well, I knew there'd be a casualty from that vw stock play
but i didn't know it'd be a casualty
http://news.bbc.co.uk/2/hi/business/7814257.stm
German billionaire kills himself
Adolf Merckle
Mr Merckle had lost heavily on Volkswagen shares in 2008
German billionaire Adolf Merckle has committed suicide after his business empire ran into trouble in the global economic slowdown.
In a statement his family said he been "broken" by the financial crisis, and had taken his own life.
Mr Merckle ran up losses of about 400m euros (£363m;$535m) last year due to wrong-way bets on Volkswagen shares.
He was ranked as the world's 94th richest person in 2008, and his family controls a number of German companies.
The 74-year-old's body was found on Monday near railway tracks in southern Germany. Officials said there was no evidence that anyone else was to blame.
Volkswagen losses
His family, which had reported him missing after he failed to return home, said in a statement: "Adolf Merckle lived and worked for his family and his firms."
"The distress to his firms caused by the financial crisis and the related uncertainties of recent weeks, along with the helplessness of no longer being able to act, broke the passionate family businessman, and he ended his life."
Mr Merckle's business interests included the generic drugs maker Ratiopharm and the cement maker Heidelberg Cement.
His holding company, VEM, had recently been in talks with banks to secure credit after it ran up high levels of debt amid the global financial crisis.
VEM said it had suffered heavy losses on investments in shares of the carmaker Volkswagen, which fluctuated wildly in value late last year as rival car company Porsche moved to increase its stake in VW.
Mr Merckle had helped turn his grandfather's chemical wholesale company into one of Germany's biggest pharmaceutical wholesalers, Phoenix Pharmahandel, in which he held a 57% stake.
He used his wealth, estimated by Forbes magazine last year to be $9.2bn, to take stakes in Heidelberg Cement and Ratiopharm.
Mr Merckle also owned stakes in companies that made a wide array of goods including all-terrain vehicles, software and textiles.
He is survived by his four children.
but i didn't know it'd be a casualty
http://news.bbc.co.uk/2/hi/business/7814257.stm
German billionaire kills himself
Adolf Merckle
Mr Merckle had lost heavily on Volkswagen shares in 2008
German billionaire Adolf Merckle has committed suicide after his business empire ran into trouble in the global economic slowdown.
In a statement his family said he been "broken" by the financial crisis, and had taken his own life.
Mr Merckle ran up losses of about 400m euros (£363m;$535m) last year due to wrong-way bets on Volkswagen shares.
He was ranked as the world's 94th richest person in 2008, and his family controls a number of German companies.
The 74-year-old's body was found on Monday near railway tracks in southern Germany. Officials said there was no evidence that anyone else was to blame.
Volkswagen losses
His family, which had reported him missing after he failed to return home, said in a statement: "Adolf Merckle lived and worked for his family and his firms."
"The distress to his firms caused by the financial crisis and the related uncertainties of recent weeks, along with the helplessness of no longer being able to act, broke the passionate family businessman, and he ended his life."
Mr Merckle's business interests included the generic drugs maker Ratiopharm and the cement maker Heidelberg Cement.
His holding company, VEM, had recently been in talks with banks to secure credit after it ran up high levels of debt amid the global financial crisis.
VEM said it had suffered heavy losses on investments in shares of the carmaker Volkswagen, which fluctuated wildly in value late last year as rival car company Porsche moved to increase its stake in VW.
Mr Merckle had helped turn his grandfather's chemical wholesale company into one of Germany's biggest pharmaceutical wholesalers, Phoenix Pharmahandel, in which he held a 57% stake.
He used his wealth, estimated by Forbes magazine last year to be $9.2bn, to take stakes in Heidelberg Cement and Ratiopharm.
Mr Merckle also owned stakes in companies that made a wide array of goods including all-terrain vehicles, software and textiles.
He is survived by his four children.
#6
Lexus Fanatic
Join Date: Aug 2006
Location: Vancouver, BC
Posts: 7,468
Likes: 0
Received 0 Likes
on
0 Posts
Interesting; I wonder which way we will see more influence?
#7
Maybe Porsche could get VW moving on a good Bentley. It seems that VW knows nothing of a large Luxury vehicle at all. They killed the Phaeton now they killed the Bentley Arnage what next will they kill.
Trending Topics
#8
Lexus Test Driver
Join Date: Jul 2008
Location: CA
Posts: 1,279
Likes: 0
Received 0 Likes
on
0 Posts
I hope this is not a repost...
Source: http://news.yahoo.com/s/afp/20090106...eoverporschevw
ffpower says: Audi's plan of going up market might be ending as Porsche wouldn't want competition from the within.
Source: http://news.yahoo.com/s/afp/20090106...eoverporschevw
ffpower says: Audi's plan of going up market might be ending as Porsche wouldn't want competition from the within.
That's not true, as Porsche has directly stated otherwise.
Thread
Thread Starter
Forum
Replies
Last Post