Sunday, September 25, 2005

Volkswagen Welcomes Porsche Plans to Buy 20% Stake

Text from Reuters.
FRANKFURT (Reuters) - Volkswagen said on Sunday it welcomed a plan by luxury carmaker Porsche to take a 20-percent stake in it to ensure their long-term business ties and prevent any hostile takeover of VW.

A Volkswagen spokesman quoted Chief Executive Bernd Pischetsrieder as saying a stable shareholder structure was important for its long-term business prospects and would strengthen VW's working relationship with Porsche.

Porsche said earlier it planned to build up its stake from currently under 5 percent and might buy shares in the open market to do so.

Luxury carmaker Porsche builds its Cayenne offroader with Volkswagen and also works with VW on developing fuel-saving hybrid technology.