Porsche raises VW stake

PORSCHE’S supervisory board has exercised its right to increase its stake in Volkswagen AG from 27.3 per cent to up to 31 per cent.

Porsche said in a statement released last week that the bid would produce a "closer bond with VW" and "produce benefits for both partners without diluting or indeed endangering the independence of Porsche." In effect, it will increase Porsche’s influence over Volkswagen – and that of VW chairman and Porsche part-owner Ferdinand Piech – and sure-up joint-venture programs on vehicles and components.

At this stage, Porsche does not intend to become a majority shareholder of the world’s fourth-largest car-maker, although this is a likely course of action further down the track.