Tuesday, March 27, 2007
Porsche pulls a fast one with VW bid
PORSCHE is increasing its stake in Volkswagen.
The German sports car-maker is taking advantage of the market so that it can boost its control over VW but without the cost of having to take-over the whole company.
Porsche seized the opportunity on Friday after a surge in VW shares.
Porsche already controls 27.3% of VW's voting rights, but if its holding reaches the 31% mark, by law it has to meet a mandatory requirement to offer to buy-out all remaining shares.
As VW shares rose over the past few days, Porsche is seizing the opportunity to buy a further 3.7% of VW and, at the same time, will offer to buy all the remaining shares at a price which is 14% below Friday's closing price.
Few, if any, of VW shareholders are likely to accept such a low offer.
DATED: 27.03.07
FEED: AW
The German sports car-maker is taking advantage of the market so that it can boost its control over VW but without the cost of having to take-over the whole company.
Porsche seized the opportunity on Friday after a surge in VW shares.
Porsche already controls 27.3% of VW's voting rights, but if its holding reaches the 31% mark, by law it has to meet a mandatory requirement to offer to buy-out all remaining shares.
As VW shares rose over the past few days, Porsche is seizing the opportunity to buy a further 3.7% of VW and, at the same time, will offer to buy all the remaining shares at a price which is 14% below Friday's closing price.
Few, if any, of VW shareholders are likely to accept such a low offer.
DATED: 27.03.07
FEED: AW
