Do More With Reuters
Partner Services

Porsche not planning now to raise VW stake - paper

Sun Jul 29, 2007 7:26pm IST
 
Email | Print | | Single Page
[-] Text [+]

FRANKFURT (Reuters) - German sports car maker Porsche is not currently considering raising its 31 percent stake in Volkswagen once a law capping voting rights is repealed, a German newspaper reported on Sunday.

"That question is not being raised as yet," Chairman Wolfgang Porsche told Frankfurter Allgemeine Sonntagszeitung, when asked whether the company would increase its control of Europe's largest carmaker once the European Court of Justice strikes down the VW Law, a move expected later this summer.

The federal law guarantees special rights for the German state of Lower Saxony, where VW's headquarters in Wolfsburg are located, as a shareholder as well as preventing any one individual investor from exercising more than 20 percent of their voting rights.

Wolfgang Porsche did not deny that the Porsche and Piech families who control the sports car maker were immune to the idea of controlling VW itself, effectively founded in 1937 by Beetle designer and family patriarch Ferdinand Porsche.

"The thought is not unappealing, that's true," said the chairman, who along with Volkswagen chairman Ferdinand Piech counts Ferdinand Porsche as his grandfather.

TAKEOVER?

Speculation over a potential takeover bid for Volkswagen has been rife since Porsche said in November it would raise its VW stake and was looking for authorisation to increase its capital by half. In March, Porsche offered to buy out investors' shares in VW, but at a price that was intentionally designed to fail, since all management wanted to do was cross the 30 percent threshold.

Now, with 31 percent of VW voting rights held, the sports car maker can raise its stake in VW as far as 50 percent without informing the market of its actions, nor is it required to launch another mandatory takeover bid for VW.  Continued...

Dubai Debt Fears

Villas are seen on the The Palm, Jumeirah, with Atlantis, The Palm, under construction on the breakwater (crescent), May 3, 2008.  REUTERS/Jumana El Heloueh

Banks outside the Gulf played down their exposure to Dubai debt, after fears the emirate could default and even derail world economic recovery prompted a sell-off in global markets.  Full Article | Slideshow 

India Investment Summit 2009
India Investment Summit 2009

Top executives and bankers discuss their own plans and the broader opportunities and challenges for India.  Full Coverage 

Photo
People stroll outside the Taj Mahal hotel ahead of the first anniversary of the militant attacks in Mumbai, November 24, 2009.  REUTERS/Punit Paranjpe
Investors worry about another attack

The risk of militants striking again worries investors who fear that a second attack similar to last year's Mumbai raids could shake the economy.  Full Article | Full Coverage 

Market Update

  • IndiaIndia
  • USUS
  • UKUK
  • Asia
  • Most Actives

road to Copenhagen

BLOGS

Photo
Calculated Move

Reliance aims big with $12 bln bid for LyondellBasell.  Blog 

SHOWCASE

Capital Raising
Capital Raising

Analysis - China banks' rush for billions could trip markets.  Full Article 

 
Photo
Bonus Payout

"Bonus" has become a dirty word on Wall Street.  Full Article 

 
Bubble trouble?
Bubble trouble?

With the BSE Sensex at around 17,000 points, are the Indian equity markets looking at a possible bubble?   Commentary 

 
Funding Blues
Funding Blues

A popular tactic used by Indian brokerages to raise money for rich clients is likely to be banned.  Full Article 

 
Recovery Path
Recovery Path

Indian techie logging out of downturn gloom.  Full Article 

 
Central Banks Cautious
Central Banks Cautious

Reuters tracks the policies of the world's top central banks as the debate over global economic recovery rages on.   Full Coverage 

 
Risky Proposal
Risky Proposal

Rupert Murdoch courts trouble if he blocks Google on news.  Full Article