Porsche Denies Intention Of Buying 75% of Volkswagen

The German sports car maker Porsche said Monday that it would not seek to raise its Volkswagen stake to 75 percent,

noting talk of such a move "overlooks the realities in VW's shareholder structure."

"In view of the fact that the state of Lower Saxony as the second biggest shareholder of Volkswagen controls more than 20 percent of the shares, the probability of acquiring the requisite shares from the free float is extremely low," Porsche said in a statement.

The maker of 911 sports cars and Cayenne sport utility vehicles was reacting to a weekend report by Germany's Focus magazine that Porsche was eyeing a VW stake of 75 percent.

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NItePhire - 3/11/2008 12:40:00 PM

+1 Boost

I dont think 75% is necessary in order to achieve what ever their goal is for this group. Firstly its rather over priced and second it opens Porsche up to all of VW's financial ills. Second, Porsche doesnt really need to own even half of VW to get the product synergy that they desire.

Agent009 - 3/11/2008 1:06:38 PM

+1 Boost

Not quite sure of the financial woes at VW you were referring to (at least globally)

From CNN:

German automaker Volkswagen AG said Friday that its 2007 net profit rose to €4.1 billion ($6.2 billion) last year with sales of nearly 6.2 million cars worldwide.

The German company, Europe's biggest car maker in terms of sales, earned €4.1 billion last year compared with €2.7 billion in 2006, beating the €3.9 billion ($5.92 billion) that analysts polled by Dow Jones Newswires had forecast.

NItePhire - 3/11/2008 11:17:06 PM

+1 Boost

I was referring to their N. American sales only and their ability or lack of to group the regular American customer to their show rooms and actually buy something. Most automakers these days are doing better over the rest of the world than in the US. We arent growing that much or fast anymore.

mini22 - 3/11/2008 1:55:17 PM

+1 Boost

Yes-It appears that VW only appears to struggle in the US.It may have softer sales in China.However it does quite well in the rest of the world.

Porschinator - 3/11/2008 4:11:14 PM

+1 Boost

Porsche current has a 30% stake in VW. All Porsche needs is too have the majority. So anything above 50% is all that is needed.

EvoAudi - 3/11/2008 10:50:01 PM

+1 Boost

nein, nein we germans only want 74% of VW.... as you can see from this chart here 74% is more than enough to yield a 37.847593649% in profits and maintain a power in VW AG.