Porsche Plans to Acquire Stake in VW
09-25-2005, 04:13 PM
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Porsche Plans to Acquire Stake in VW
BERLIN - Luxury sports car maker Porsche AG said Sunday it plans to acquire a stake of about 20 percent in Volkswagen AG, a move aimed at strengthening ties between the automakers and preventing a future hostile takeover of Volkswagen.
Porsche said Volkswagen had become "a significant supplier for about 30 percent of our sales volume," as well as "an important partner in development."
The two companies worked together to develop Porsche's Cayenne sport utility vehicle and Volkswagen's Touareg. They recently announced that they, along with Audi AG, were forming an alliance to develop hybrid engines
"With this engagement, we want to secure our business relations with VW and also safeguard in the long term a significant part of our future planning," Porsche chief executive Wendelin Wiedeking said in a statement.
Stuttgart-based Porsche said it hoped the investment would enable it to head off any future hostile takeover of Volkswagen by investors "who do not have the long-term interests of VW as their aim."
Porsche said Volkswagen had become "a significant supplier for about 30 percent of our sales volume," as well as "an important partner in development."
The two companies worked together to develop Porsche's Cayenne sport utility vehicle and Volkswagen's Touareg. They recently announced that they, along with Audi AG, were forming an alliance to develop hybrid engines
"With this engagement, we want to secure our business relations with VW and also safeguard in the long term a significant part of our future planning," Porsche chief executive Wendelin Wiedeking said in a statement.
Stuttgart-based Porsche said it hoped the investment would enable it to head off any future hostile takeover of Volkswagen by investors "who do not have the long-term interests of VW as their aim."
09-26-2005, 03:24 PM
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This is well publisized on the financial pages. It's a top headline on Bloomberg news, due to the fact that Porsche AG shares tanked once the news went public. Porsche will pay the equivalent of $4B from available cash for a 20% stake in VW AG.
http://news.google.com/news?q=PORSCH...en&sa=N&tab=wn
http://news.google.com/news?q=PORSCH...en&sa=N&tab=wn
09-26-2005, 03:39 PM
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Originally Posted by HIGHBOOST
So what does this mean for Porsche and VW? faster vw's? ha
09-26-2005, 03:41 PM
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Originally Posted by HIGHBOOST
So what does this mean for Porsche and VW? faster vw's? ha
