Stuttgart-based Porsche said its supervisory board authorized lifting its stake from the 27.3% of Volkswagen it already owns and, as a result, will make a mandatory bid for the entire company.
Porsche said it would only offer the minimum price allowed by law as part of the mandatory offer. Porsche expects the offer to be 100.92 euro ($134.18) for a VW share. VW shares closed up 6.17% on Friday to 117.95 euro, or $156.83.
Volkswagen's market value is $45.05 billion.
A spokesman for Porsche told WSJ.com that the company did not expect many shareholders to accept the bid and that Porsche did not have intentions to buy VW with the tender offer. But he did say that Porsche has not ruled out a buyout or raising its stake in VW above 31%.
With Saturday's move, however, Porsche may be able to block a full takeover by a rival, the report said. A law that had protected VW from unwanted buyers is expected to be repealed by the European Union.
Porsche and the German state of Lower Saxony, which holds 20% of Europe's biggest car maker, will between them hold 51% of the company. The state of Lower Saxony, which is a passive investor in VW, welcomed Porsche's move.
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