Porsche ups VW stakes
BY MARTON PETTENDY | 7th Mar 2008
The Supervisory Board of Porsche Automobil Holding SE announced it gave the go-ahead for an increase in its stake in Volkswagen AG to more than 50 per cent, following its extraordinary meeting on March 3.
The Porsche Managing Board is now expected to take several months to clear the buy-out with regulatory laws globally, after which Porsche SE will formally make its claim on the majority of VW AG shares.
Porsche's announcement a week ago followed confirmation from Volkswagen, Europe's largest car-maker, that it had won control of Swedish truck maker Scania, a move that could significantly alter the heavy vehicle industry if Scania is merged with Germany's MAN, in which VW is also the majority shareholder.
According to VW, it will hold 68.60 per cent of the voting rights in Scania and increase its direct stake to 37.73 per cent after buying shares from the Wallenberg family.
For its part, Porsche says it does not intend to merge its famed sports car company with that of Volkswagen.
"Our aim is to create one of the strongest and most innovative automobile alliances in the world, which is able to measure up to the increased international competition," said Dr Wendelin Wiedeking, Porsche SE CEO.
Porsche said that employee representatives from the Volkswagen Group willbecome members of the Supervisory Board of Porsche Automobil Holding SE. Together with the representatives of Porsche AG, they will constitutethe employee grouping within the 12-member Supervisory Board of Porsche's holding company.
"Our aspiration to become the majority shareholder of Volkswagen is good news for the employees of the Volkswagen Group and of Porsche. The decision of theSupervisory Board secures the long-term future of both companies,” said Dr Wiedeking.
Porsche said that based on the current stock exchange price of approximately 150 Euro per ordinary share, the acquisition of a further 20 per cent in VW corresponds to an investment of almost 10 billion Euro.