Porsche gains majority shares in Volkswagen

[Lomac]

FRANKFURT - Shares in Volkswagen traded higher on Tuesday, pacing European auto stocks, following news late on Monday that Porsche SE raised its voting stake in the world's third-largest carmaker to a majority.


The much anticipated move triggers a mandatory takeover bid for Swedish truck maker Scania since ownership will indirectly pass to Porsche now that the sportscar maker has lifted its VW holding to 50.8%.


Ordinary shares in VW gained over 6% to trade above 270 euros by 0955 GMT, helping to drive the European autos subindex 3.2% higher. German blue chips gained just 0.7%.


Porsche shares were up 1.1% at 54.49 euros.


A Porsche spokesman confirmed late on Monday that the company still planned to increase its stake in VW to 75% at some point this year, given a favourable market environment.


"I think Porsche will stick with its 50% this year, since it would just be burning money to raise its voting stake to 75% at current prices," said NordLB's Frank Schwope.


The analyst did not expect a clause in both the Volkswagen Law or the VW statutes to be abolished before the end of 2010, which requires Porsche muster at least 80% support before gaining full control over management and cash flows via a so-called Domination and Profit Transfer Agreement.


Until then, the state of Lower Saxony can veto Porsche's plans with its 20% blocking minority that has protected government influence at Europe's largest carmaker for decades.


"The call for state involvement has become popular ever since the nationalization of the banks, so the wind has turned against Porsche," NordLB analyst Schwope added.


Porsche, which last disclosed a 42.6% voting stake late in October, said a month later that a high VW share price could force it to postpone plans to acquire majority control by the end of last year, but only just.


"It can happen now or it could also happen in January ... whether it is then plus or minus four weeks, I cannot say," Porsche finance chief Holger Haerter told Reuters late in November.


COULD SELL SCANIA SHARES TO VW


Porsche is now required by Swedish law to make a mandatory takeover offer but said it had no strategic interest in Scania and would only bid the legal minimum, since it was not interested in acquiring Scania shares.


Regulators are expected to name the bid price to Porsche in the coming days, and after a period of at most five weeks, shareholders in Scania should receive the published bid.


"The only real news was that they could not get around making an offer for Scania. Now that the bid is here, the speculation is over and the air will escape from the Scania shares," said Sal. Oppenheim analyst Christian Breitsprecher, who expects profit taking in the Swedish truckmaker.


Stockholm's stock exchange is closed on Tuesday for a holiday, but Scania B shares were trading down in Frankfurt by half a%.


Porsche has already been forced to bid for the less than 1% of Audi shares in freefloat, but had agreed to sell any tendered stock back to Audi parent Volkswagen.


A source at Porsche said such a construct could be a possible option for Scania as well.


The Swedish truckmaker is currently controlled by Volkswagen with 68.6% of the votes, as well as MAN AG, which bought call options just before Christmas that give it access to more than 20% of Scania votes.

Thoughts?

[Chopstick]

3.6 flat 6 gti

(@__@)!!!

or is Chopsitck missing the big picture here...

[roastpuff]

Anschluss?

[yvrnycracer]

mmm... take the best of porsche and toss it in to a vw... how that would be a dream come true!

[skyxx]

We don't really know what Porsche is up to, but one thing I know is that they want a bigger chunk of VW so they can have more financial resource in their own R & D plus it stops other companies from acquiring Porsche. This move could be a bad thing for other competing vehicles in the VAG group or it could benefit it. No one really knows yet.

[asian_XL]

I was listening to the radio, and they say it involves political and financial interest in
Germany. Didn't pay attention to the detail, but that's what I heard. The German govn't
and porsche intended the share gain to prevent any hostile take over.

Porsche isn't going to do anything to current vw lineup, dont' expect to see Golf with
boxer turbo engine. Porsche is now focusing Cayenne hybrid, diesel as their next models.

[.Renn.Sport]

maybe this finally stop those retard that always say VAG owns porsche.....

but what's worst is that those VW fan boy will now say that their car is build by porsche...
LOL

[ncrx]

they indirectly caused my previous employer's owner to jump in front of a train

http://online.wsj.com/article/SB1231...googlenews_wsj

[Z3guy]

imo, this is a very smart and strategic move on Porsche's part.....now they have access to VWs chassis, engines, transmissions, and technology. I am sure you are going to see more Cayenne/tourag vehicles.
This will allow Porsche to leverage the "porsche" clout to other vehicles.

[.Renn.Sport]

didnt porsche want to make a hatch based on the MKVI Golf platform using the 2.0TFSI?

[El Bastardo]

I think this will also ensure VW quality. You won't see it slip for the sake of cheaper manufacturing costs if another company had taken such a stake in VW

[boibuddha]

Originally Posted by Z3guy

... I am sure you are going to see more Cayenne/tourag vehicles....

I thought that the new Cayenne was going to be based off the Audi Q7 because the Touareg was too big of a boat...

[.Renn.Sport]

Originally Posted by boibuddha

I thought that the new Cayenne was going to be based off the Audi Q7 because the Touareg was too big of a boat...

Q7 is quite a bit larger then Touareg and Cayenne....
also Q7 is based off the Cayenne.

are you talking about Q5???

[boibuddha]

i could be... not very familiar with the audi SUVs

[thumper]

for those who can remember that far back... maybe we'll see the return of the 912 and 914

[Black SC2]

Rear engined beetle gets my vote.

[trdees]

all 911 officially can now proudly be called VW beetles

[Z3guy]

Originally Posted by thumper

for those who can remember that far back... maybe we'll see the return of the 912 and 914

I just hope Porsche doesn't water down the brand too much....the 914 was a very good car, unfortunately the car was just too gutless. They should have never launched the 4cyl version of the 914. The 914-6....now that's a different ball game.

I am pretty sure you will see a compact & light, VW/Porsche/Audi roadster which utilizes the VW 4cyl turbo motor. However, I believe VW has a SC/Turbo 1.4l direct injection gas engine from Europe....that would be interesting

[thumper]

Originally Posted by Z3guy

However, I believe VW has a SC/Turbo 1.4l direct injection gas engine from Europe....that would be interesting

yup... twincharged

[Black SC2]

I think Porsche should retroactively remove their name from the 914. 914 owners are the worst bunch of brand flag wavers I've ever come across, and they have the WORST version of a Porsche ever to roll out of the Sauerkraut hills.