Sunday, May 13, 2007

Volkswagen says no to Porsche bid

As expected, Volkswagen shareholders unanimously rejected Porsche's takeover bid. Porsche launched a takeover bid after they crossed the 30% threshold that required them to launch such a bid, as required by a German law. Of course, since Porsche has already stated that they have no intention of taking over Volkswagen just yet, they proposed a low ball offer of €100.92 per stock compared to the market value of €112. Porsche knew that Volkswagen would never accept such a bid. In a way, this bid is only a formality because now, if Porsche seeks to increase it's stake in Volkswagen further, then they no longer need to put forward another takeover bid.

Source: Autoblog

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