asian_XL
07-01-2009, 07:46 PM
http://www.businessweek.com/globalbiz/content/jun2009/gb20090630_832724.htm
:facepalm:
Summary: The power struggle between German automakers Porsche and Volkswagen escalated on Monday with Porsche rejecting VW's takeover bid as unfeasible. That means Porsche still hasn't found a solution for its debt problems, and time is running out.
Porsche, the debt-laden German sports carmaker, on Monday rejected Volkswagen's offer to buy a 49 percent stake as the damaging power struggle between the two companies escalated. "It's not a viable option to sell 49.9 percent of Porsche AG to VW," a Porsche (PSHG_P.DE) spokesman told German news agency DPA.
The spokesman said Porsche couldn't accept the offer because it would then have to immediately pay back the €10.75 billion ($15.06 billion) loan it has secured from a banking consortium. Earlier, Christian Wulff, governor of the German state of Lower Saxony which owns a 20 percent stake in VW (VOWG.DE), called on Porsche to reach a decision soon on the proposed takeover. According to information obtained by SPIEGEL, Wulff and VW's management have demanded that Porsche agree to a merger by the end of June. Under the plan, VW would acquire 49 percent of Porsche for between €3 billion and €4 billion, which would enable Porsche to pay back a large part of the debt it incurred trying to acquire a majority of VW last year.
The supervisory board chairman of Porsche, Wolfgang Porsche, and works council chief Uwe Hück responded to the offer by issuing a joint statement saying: "We will not be blackmailed."
Porsche's tough stance could worsen its problems. According to business daily Handelsblatt, the emirate of Qatar, the last prospective investor that could still preserve Porsche from being swallowed up by Volkswagen, has called for a decision soon and is only interested in buying a stake in a merged VW/Porsche group, not in either of the two companies separately.
The dispute pushed down VW stock by up to five percent to €237 on Monday. "The quarrelling between VW and Porsche is weighing on the stock," one share trader said. "The investors are worried that the companies are focusing too much on their power struggle and not enough on their business."
1 year ago....when porsche tried to take over VW
http://www.motorauthority.com/porsche-confirms-plans-to-increase-stake-in-vw-above-50.html
Updated: The European Commission has finally given permission for Porsche to acquire control of the Volkswagen Group, something the German sports carmaker previously confirmed it would do before the end of the year. Porsche’s supervisory body authorized the purchase of a majority stake in Volkswagen, about $15.73 billion worth of shares, as far back as March. This would take Porsche’s current holding of about 31% beyond the 50% mark, giving it control of the entire Volkswagen Group.
The German state of Lower Saxony, however, VW's second-biggest shareholder with around 20% of voting rights, said it plans to keep its stake. This means that decisions made by Porsche, even with a controlling stake, could be blocked by the state.
Original: Porsche has released a statement announcing plans to increase its stake in Volkswagen Group to more than 50% by the end of the year. Porsche’s current shareholding remains at 31% but an increase beyond 50% would effectively give it control of the German giant.
The statement said the goal is also for Porsche and Volkswagen to continue on the path of growth under the holding company Porsche Automobil Holding but to also retain their independence. "Porsche will also remain Porsche in the future. And Volkswagen will also remain Volkswagen. That is the success formula," Porsche CEO Wendelin Wiedeking said in the statement.
There remains fears that sports car programs from Audi, Bentley and Bugatti that could potentially compete with Porsche’s sports cars could be canceled once the Stuttgart-based carmaker takes control, reports Automotive News.
The announcement comes less than a week after Germany approved a revised version of its 48-year old VW Law, which mandates that any major strategic decisions within VW would still have to be approved by just over 80% of shareholders. This means that decisions made by Porsche, even with a controlling stake, could be blocked by the German state of Lower Saxony, which still holds 20% of VW.
:facepalm:
Summary: The power struggle between German automakers Porsche and Volkswagen escalated on Monday with Porsche rejecting VW's takeover bid as unfeasible. That means Porsche still hasn't found a solution for its debt problems, and time is running out.
Porsche, the debt-laden German sports carmaker, on Monday rejected Volkswagen's offer to buy a 49 percent stake as the damaging power struggle between the two companies escalated. "It's not a viable option to sell 49.9 percent of Porsche AG to VW," a Porsche (PSHG_P.DE) spokesman told German news agency DPA.
The spokesman said Porsche couldn't accept the offer because it would then have to immediately pay back the €10.75 billion ($15.06 billion) loan it has secured from a banking consortium. Earlier, Christian Wulff, governor of the German state of Lower Saxony which owns a 20 percent stake in VW (VOWG.DE), called on Porsche to reach a decision soon on the proposed takeover. According to information obtained by SPIEGEL, Wulff and VW's management have demanded that Porsche agree to a merger by the end of June. Under the plan, VW would acquire 49 percent of Porsche for between €3 billion and €4 billion, which would enable Porsche to pay back a large part of the debt it incurred trying to acquire a majority of VW last year.
The supervisory board chairman of Porsche, Wolfgang Porsche, and works council chief Uwe Hück responded to the offer by issuing a joint statement saying: "We will not be blackmailed."
Porsche's tough stance could worsen its problems. According to business daily Handelsblatt, the emirate of Qatar, the last prospective investor that could still preserve Porsche from being swallowed up by Volkswagen, has called for a decision soon and is only interested in buying a stake in a merged VW/Porsche group, not in either of the two companies separately.
The dispute pushed down VW stock by up to five percent to €237 on Monday. "The quarrelling between VW and Porsche is weighing on the stock," one share trader said. "The investors are worried that the companies are focusing too much on their power struggle and not enough on their business."
1 year ago....when porsche tried to take over VW
http://www.motorauthority.com/porsche-confirms-plans-to-increase-stake-in-vw-above-50.html
Updated: The European Commission has finally given permission for Porsche to acquire control of the Volkswagen Group, something the German sports carmaker previously confirmed it would do before the end of the year. Porsche’s supervisory body authorized the purchase of a majority stake in Volkswagen, about $15.73 billion worth of shares, as far back as March. This would take Porsche’s current holding of about 31% beyond the 50% mark, giving it control of the entire Volkswagen Group.
The German state of Lower Saxony, however, VW's second-biggest shareholder with around 20% of voting rights, said it plans to keep its stake. This means that decisions made by Porsche, even with a controlling stake, could be blocked by the state.
Original: Porsche has released a statement announcing plans to increase its stake in Volkswagen Group to more than 50% by the end of the year. Porsche’s current shareholding remains at 31% but an increase beyond 50% would effectively give it control of the German giant.
The statement said the goal is also for Porsche and Volkswagen to continue on the path of growth under the holding company Porsche Automobil Holding but to also retain their independence. "Porsche will also remain Porsche in the future. And Volkswagen will also remain Volkswagen. That is the success formula," Porsche CEO Wendelin Wiedeking said in the statement.
There remains fears that sports car programs from Audi, Bentley and Bugatti that could potentially compete with Porsche’s sports cars could be canceled once the Stuttgart-based carmaker takes control, reports Automotive News.
The announcement comes less than a week after Germany approved a revised version of its 48-year old VW Law, which mandates that any major strategic decisions within VW would still have to be approved by just over 80% of shareholders. This means that decisions made by Porsche, even with a controlling stake, could be blocked by the German state of Lower Saxony, which still holds 20% of VW.