Porsche Backs Off Taking Over Control of VW

Porsche AG is not planning a complete takeover of peer Volkswagen AG, German weekly Focus said in a report to be published tomorrow.

Focus reported that VW supervisory board chairman Ferdinand Piech has told fellow VW supervisory board members that the Porsche and Piech families, which control Porsche, have decided against a takeover.

Focus said the decision was taken mainly because of financial risks.

Porsche said on Wednesday it had increased its stake in VW to 27.4 pct from 21.2 pct and that its supervisory board had given the green light to raise the stake to a maximum of 29.9 pct.

Under German law, Porsche must launch a takeover bid once it gains a 30 pct holding.
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AmazingBimmer - 11/20/2006 11:06:51 PM

+1 Boost

smart. Who would want to buy htat piece of crap. Porsche already owns superior technology in every sense. Everybody knows the middle market is getting squeezed. Again, smart move.

JUGNU - 11/21/2006 6:02:17 AM

+1 Boost

yeahh smart move.

JUGNU

audirevolution - 11/21/2006 3:45:10 PM

+1 Boost

Smart move.
And VW's arn't crap.
The Passat, Jetta, and Rabbit are one of the best in their categories.
Of course they are no match for the BMW, Benz, or Audi.

Occarnut - 11/22/2006 7:45:21 AM

+1 Boost

We will see if it is a smart move...Porsche will continue to have to play in more and more segments if it wants to remain autonomous...Porsche is already skipping the 2007 model year Cayanne to get existing Cayanne inventory "under control", the Panamerica (i.e. Porsche sedan) spy shots don't look too impressive yet..so maybe we can also look forward to the Porsche RX330 beater, The Porsche LS460 beater, and the Porsche F-150 beater.