VW increases its bid for a stake in the German sports car maker
Volkswagen has raised the stakes in its bid to purchase a 49.9 per cent share in Porsche AG.
VW originally bid between 3 billion and 4 billion euros for a stake in the German sports car maker, a move which would help alleviate some of the 9 billion euros of debt Porsche SE (the car maker's parent company) has built up in its attempt to take over VW.
Now, though, VW has reportedly pushed its bid to considerably more than 4 billion euros, though German weekly Der Spiegel has said that Porsche CEO Wendelin Wiedeking still reckons the new sum is not enough.
Instead, Wiedeking is said to be keener on an investment by the state of Qatar in 25 per cent of the whole Porsche organisation. In that scenario, Qatar would pay 7 billion euros for a quarter of the Sports car business and Porsche's options on VW stock.
The preferred method of saving Porsche is likely to be decided on 23rd July, when the Porsche supervisory board meets.
I just don't understand how Porsche are in this situation... didn't they burn loads of hedge fund managers through options it held on VW stock about 6 months ago? They made billions of euro's overnight! Wendelin Wiedeking was hailed a finanicial wizard. And now they are 9bn in the red!?
dpbird9013 Jul 2009
This is getting very confusing. Porsche bought shares in VW, now VW are buying shares in Porsche; does this mean they are also buying themselves?
LuS1fer13 Jul 2009
Don't worry, the Bananamera will get Porsche out of difficulty...no, wait....
Rude-boy13 Jul 2009
Yes Porsche did make a killing, with someone else's money which they had borrowed. Every penny they borrowed or made was used to buy VW shares.
They gambled on a law the EU had ruled as being illegal being revoked. It was, but it was immediately replaced by another almost identical one. This stopped Porsche buying the last shares it needed for control and to get their hands on the money to payback their backers.
The biter got bitten.
havoc13 Jul 2009
The biter got bitten.
No, the German gov't (or at least Lower Saxony's) defied EU law (in spirit at least).
This has f'd Porsche over and left them vulnerable to VW...one might almost think that Lower Saxony like their veto over VW so much they're prepared to play silly beggars to preserve it...
I don't have much time for Porsche (great cars, lousy attitude, at least in the UK), but in this instance I've a lot of professional sympathy - they've been f'd over by politicians who wanted to keep their little powers/toys...