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Porsche buys additional Volkswagen shares
Luxury carmaker Porsche AG said Friday it has purchased an additional 8.27 percent of Volkswagen AG as part of its plan to acquire a stake of around 20 percent aimed at blocking any hostile takeover of its automaking partner.
Porsche said it now holds 18.53 percent of Volkswagen and could buy 3.4 percent more. It said it had acquired the additional shares from institutional investors.
The company also said Germany's Federal Cartel Office had given its approval to the transaction.
Porsche did not say how much it paid for the new stake, but VW shares closed Friday at 49.74 euros ($60.40), up 0.3 percent. Its own shares closed down 0.7 percent at 614.65 euros ($746.43) in Frankfurt.
Stuttgart-based Porsche has said it is seeking to become the largest shareholder in Volkswagen to secure their relationship against a possible hostile takeover. Volkswagen is a supplier for some 30 percent of Porsche's production, and the platform for Porsche's Cayenne sport utility vehicle is produced at a Volkswagen plant in Leipzig.
The stock purchase has provoked criticism from some stock market analysts, who say it appears more aimed at protecting Volkswagen than supporting Porsche's interests.
Volkswagen's board chairman, Ferdinand Piech, also sits on Porsche's supervisory board. He is the grandson of Ferdinand Porsche, the designer of VW's original Beetle model, and the Porsche and Piech families own more than half of Porsche's stock and voting shares.
Source: http://www.businessweek.com/ap/financialnews/D8D3B12OA.htm?campaign_id=apn_euro_up&chan=gb
Luxury carmaker Porsche AG said Friday it has purchased an additional 8.27 percent of Volkswagen AG as part of its plan to acquire a stake of around 20 percent aimed at blocking any hostile takeover of its automaking partner.
Porsche said it now holds 18.53 percent of Volkswagen and could buy 3.4 percent more. It said it had acquired the additional shares from institutional investors.
The company also said Germany's Federal Cartel Office had given its approval to the transaction.
Porsche did not say how much it paid for the new stake, but VW shares closed Friday at 49.74 euros ($60.40), up 0.3 percent. Its own shares closed down 0.7 percent at 614.65 euros ($746.43) in Frankfurt.
Stuttgart-based Porsche has said it is seeking to become the largest shareholder in Volkswagen to secure their relationship against a possible hostile takeover. Volkswagen is a supplier for some 30 percent of Porsche's production, and the platform for Porsche's Cayenne sport utility vehicle is produced at a Volkswagen plant in Leipzig.
The stock purchase has provoked criticism from some stock market analysts, who say it appears more aimed at protecting Volkswagen than supporting Porsche's interests.
Volkswagen's board chairman, Ferdinand Piech, also sits on Porsche's supervisory board. He is the grandson of Ferdinand Porsche, the designer of VW's original Beetle model, and the Porsche and Piech families own more than half of Porsche's stock and voting shares.
Source: http://www.businessweek.com/ap/financialnews/D8D3B12OA.htm?campaign_id=apn_euro_up&chan=gb
