phaeton
02-09-2007, 10:23 PM
FRANKFURT (Reuters) - German sports car maker Porsche (PSHG_p.DE: Quote, Profile, Research) aims to raise its stake in German car maker Volkswagen (VW) (VOWG.DE: Quote, Profile, Research) to 51 percent, the German current affairs weekly Der Spiegel reported.
A Porsche spokesman said on Saturday that the company's board had made no decision about raising the stake above the current 31 percent.
Citing unidentified stock market sources, the magazine said Porsche was buying options entitling it to increase its VW stake by exercising them.
"Traders expect that Porsche will exceed the 50-percent limit at the start of next year," Der Spiegel said.
The Porsche spokesman referred to an earlier announcement by the company's Chief Financial Officer, Holger Haerter, that Porsche has acquired some options in order to be able to raise its VW stake further if needed.
VW's share price rose more than 14 percent last month -- outperforming a European car sector index (.SXAP: Quote, Profile, Research), which fell almost 3 percent -- fuelled partly by market speculation that Porsche might consolidate its control by buying the state of Lower Saxony's 20 percent VW stake.
At the time, both Lower Saxony and Porsche denied any such plans.
http://uk.reuters.com/article/businessNews/idUKL019402920070901
What does it mean for VW ?
-Increased synergies with Porsche thereby sharing development costs (eg Hybrid technology).
-Porsche have stated that they will try and make VW production more lean and efficent (like Toyota).
-Porsche want VW to target Toyota
Any negatives ?
-So far none in site, Porsche and VW have both benefited from VWs share price rise in last 12 mths. (up over 50% since Porsche buy).
-Ferdinand Piech and his Imperial like leadership (depends on opinion ;))
VW will continue luxury push with Roadster, 4dr Coupe, Luxury Sports Wagon, Phaeton II and Phaeton based Coupe.
A Porsche spokesman said on Saturday that the company's board had made no decision about raising the stake above the current 31 percent.
Citing unidentified stock market sources, the magazine said Porsche was buying options entitling it to increase its VW stake by exercising them.
"Traders expect that Porsche will exceed the 50-percent limit at the start of next year," Der Spiegel said.
The Porsche spokesman referred to an earlier announcement by the company's Chief Financial Officer, Holger Haerter, that Porsche has acquired some options in order to be able to raise its VW stake further if needed.
VW's share price rose more than 14 percent last month -- outperforming a European car sector index (.SXAP: Quote, Profile, Research), which fell almost 3 percent -- fuelled partly by market speculation that Porsche might consolidate its control by buying the state of Lower Saxony's 20 percent VW stake.
At the time, both Lower Saxony and Porsche denied any such plans.
http://uk.reuters.com/article/businessNews/idUKL019402920070901
What does it mean for VW ?
-Increased synergies with Porsche thereby sharing development costs (eg Hybrid technology).
-Porsche have stated that they will try and make VW production more lean and efficent (like Toyota).
-Porsche want VW to target Toyota
Any negatives ?
-So far none in site, Porsche and VW have both benefited from VWs share price rise in last 12 mths. (up over 50% since Porsche buy).
-Ferdinand Piech and his Imperial like leadership (depends on opinion ;))
VW will continue luxury push with Roadster, 4dr Coupe, Luxury Sports Wagon, Phaeton II and Phaeton based Coupe.