Friday, June 20, 2008

Porsche ups stake in Volkswagen; Lower Saxony follows suit

In this ever continuing saga between Porsche and Lower Saxony, Porsche has decided to increase its stake in Volkswagen to 35.6. The EU Commission requires that in order for a company to file for a takeover bid, it must already have controlling interest in the company for which it wants to takeover. With this move, Porsche gains exactly that, a controlling interest in Volkswagen.

Not to be left out, Lower Saxony scrambles to purchase 500,000 shares in order to stay close to Porsche's tail. Lower Saxony, protected by the new and improved Volkswagen Law, is the home of Volkswagen and many of the company's workers. However, as with the original Volkswagen Law, the revised law is also expected to be quashed by the EU. That makes a Porsche takeover inevitable.

Source: Autoblog


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