Porsche gets green light to buy VW

Schatten · Mar 3, 2008

Technically speaking that is. Just over 50% of their stock and they'll own VW. No plans for a merger.

http://ap.google.com/article/ALeqM5gPdxJfID4Tr7scxh0cMBvnDHpZtQD8V62EUG2

Porsche Gets OK to Boost VW Stake

By MATT MOORE 1 hour ago

BERLIN (AP) Porsche AG said Monday that it has won approval from the supervisory board of its holding company to take a majority stake in Volkswagen AG, Europe's biggest car maker, but does not plan to combine the two companies.

Porsche is Volkswagen's biggest shareholder with a stake of 31 percent, followed by the state of Lower Saxony, where the Wolfsburg-company is based, which holds just more than 20 percent.

Speculation has swirled for months over when Porsche might move to take a majority stake on its own. It has been profiting from its stake in VW, and most analysts thought it would only be a matter of time before it buys more VW shares.

On Monday, the supervisory board of Porsche Automobil Holding SE held an extraordinary meeting and authorized Porsche managers to set in motion steps needed to gain regulatory approval for the move, Porsche said.

"The reviews by the regulatory authorities are expected to take several months," a company statement said. "As soon as the requisite clearances have been obtained, Porsche SE can acquire the majority of the shares in Volkswagen."

It added that "it is not planned to merge the two companies."

"Our aim is to create one of the strongest and most innovative automobile alliances in the world, which is able to measure up to the increased international competition," Porsche chief executive Wendelin Wiedeking said.

Lower Saxony's governor, Christian Wulff, said Porsche's move to seek a majority had long been expected, and said it was "a development that promises much in the future." He said his state was ready to "more forward the company in partnership" with Porsche.

"So far, Porsche has played a very positive role at VW with automotive expertise," said Wulff, who has ruled out selling any of Lower Saxony's state and in January won a second term as governor.

Volkswagen, for its part, greeted the plan with enthusiasm.

"We welcome the planned increase (of the stake) by Porsche just as we welcomed the investment" in the first place, Volkswagen spokesman Michael Brendel said.

Speculation that Porsche would move to take a majority in Volkswagen had been rampant since late last year when the European Court of Justice ruled that Germany's so-called "VW law" had illegally shielded Volkswagen from any takeovers.

Porsche and Lower Saxony together have a VW stake of more than 51 percent between them, and are already in a position to block any would-be foreign takeover of Volkswagen.

Porsche shares were up 3.1 percent to 117.09 euros ($177.59). Volkswagen shares rose more than 2 percent to 153.08 euros ($232.18).
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TexasF355F1 · Mar 3, 2008

How would this impact the various VW brands....i.e. Lamborghini?

Doesn't seem like it would be a bad thing. Maybe some RWD Volks?

Bullfighter · Mar 3, 2008

TexasF355F1 said: ↑

How would this impact the various VW brands....i.e. Lamborghini?

Doesn't seem like it would be a bad thing. Maybe some RWD Volks?
Click to expand...

I'm guessing this would allow Porsche continued access to the Touraeg platform, and maybe help them replace the Tiptronic with Audi or Lambo's F1 gearbox.

James_Woods · Mar 3, 2008

Bullfighter said: ↑

I'm guessing this would allow Porsche continued access to the Touraeg platform, and maybe help them replace the Tiptronic with Audi or Lambo's F1 gearbox.
Click to expand...

Like spy author Len Deighton (Ipcress File, Funeral in Berlin) once wrote about the potential reunification of Germany:

"Well, it will either put the Russians all the way back to Poland, or all the way forward to Belgium..."

Pantera · Mar 3, 2008

TexasF355F1 said: ↑

How would this impact the various VW brands....i.e. Lamborghini?

Doesn't seem like it would be a bad thing. Maybe some RWD Volks?
Click to expand...

Great now there is going to be Lamborghini with Porsche parts used.

Schatten · Mar 3, 2008

Pantera said: ↑

Great now there is going to be Lamborghini with Porsche parts used.
Click to expand...

The same was said with VW and Lamborghini, and look where it has taken them.

The questions that I have: is this done out of fear for the supercar market? R8/Gallardo vs. the 911's? Merci vs the GTs?

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