Porsche to raise VW stake to almost 36 pc by September: company
German sports car maker Porsche wants to raise its stake in Volkswagen, Europe's biggest auto firm, to almost 36 per cent soon to be able to control the agenda at VW general assemblies.
By Agencies |
FRANKFURT: German sports car maker Porsche wants to raise its stake in Volkswagen, Europe's biggest auto firm, to almost 36 per cent soon to be able to control the agenda at VW general assemblies.
The purchase of new VW shares equivalent to 4.92 per cent of the capital in the car giant "will take place on September 2," a Porsche spokesman told media, confirming remarks a day earlier by boss Wendelin Wiedeking.
"On September 2, we will have an absolute majority at the general assembly," Wiedeking had told a meeting in western Germany.
With the additional shares, Porsche would own 35.5 per cent of Volkswagen. "If we have the authorisations of all authorities, we will increase our holding progressively to more than 50 per cent," the spokesman said Thursday.
Porsche has said since early March that it planned to take over the much bigger VW and has been waiting for the approval of various competition authorities.
The European Commission is to announce its position on July 23. Porsche is seeking separately to counter efforts by the German government and the state of Lower Saxony, where VW is based, to retain a blocking minority held by the state, which owns around 20 percent of the shares in VW.
In mid-June, Porsche said the European Commission wanted to be sure that Porsche would be able to takeover VW, by obtaining around 36 percent of the group, a level at which the Commission considered that Porsche would be able to achieve a majority of votes at a general assembly.
That explained the purchase of contracts covering almost five percent of the capital in VW which are to be executed on September 2. Analysts suggested Porsche could use the occasion to announce its takeover.
"In our opinion, Porsche will obtain 50 percent of ordinary shares and stay there," analysts at Sal Oppenheim said in a research note.
"We do not expect that Porsche will take full control of VW," which would require the purchase of all its shares, they added.
The purchase of new VW shares equivalent to 4.92 per cent of the capital in the car giant "will take place on September 2," a Porsche spokesman told media, confirming remarks a day earlier by boss Wendelin Wiedeking.
"On September 2, we will have an absolute majority at the general assembly," Wiedeking had told a meeting in western Germany.
With the additional shares, Porsche would own 35.5 per cent of Volkswagen. "If we have the authorisations of all authorities, we will increase our holding progressively to more than 50 per cent," the spokesman said Thursday.
Porsche has said since early March that it planned to take over the much bigger VW and has been waiting for the approval of various competition authorities.
The European Commission is to announce its position on July 23. Porsche is seeking separately to counter efforts by the German government and the state of Lower Saxony, where VW is based, to retain a blocking minority held by the state, which owns around 20 percent of the shares in VW.
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In mid-June, Porsche said the European Commission wanted to be sure that Porsche would be able to takeover VW, by obtaining around 36 percent of the group, a level at which the Commission considered that Porsche would be able to achieve a majority of votes at a general assembly.
That explained the purchase of contracts covering almost five percent of the capital in VW which are to be executed on September 2. Analysts suggested Porsche could use the occasion to announce its takeover.
"In our opinion, Porsche will obtain 50 percent of ordinary shares and stay there," analysts at Sal Oppenheim said in a research note.
"We do not expect that Porsche will take full control of VW," which would require the purchase of all its shares, they added.
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