Porsche, the German maker of luxury sports cars, has launched an official bid to acquire Volkswagen, Europe’s largest auto manufacturer.
Stuttgart-based Porsche announced in late March that it would exercise an option to buy an additional 3,6% stake in Volkswagen.
The additional shares raised Porsche’s interest in Volkswagen to 30,9%, effectively obliging it under German law to launch a public takeover for all outstanding Volkswagen shares.
Under an offer to run until May 29, Porsche said it would propose â,¬100,92 per ordinary share, which is well below Volkswagen’s current share price of about â,¬112, and â,¬65,54 for priority dividend shares.
Analysts have predicted that few shareholders were likely to take up Porsche’s offer, adding that Porsche in effect has no intention of buying all of Volkswagen’s share capital just yet.
They see the move as a clever way for Porsche to increase its stature in Volkswagen without being forced to pay for any additional shares. — AFP