RE: Porsche Buys VW Buys Porsche?
Thursday 23rd April 2009
An old Porsche, er... VolkswagenIf successful, the proposed purchase would turn upside-down the recent high-profile purchase of VW by Porsche’s holding company Porsche SE. In the words of a source quoted by the FT ‘the tail would finally stop wagging the dog’.
Porsche Buys VW Buys Porsche?
Boardroom shenanigans could put VW back in the Porsche driving seat
A report in today’s Financial Times claims Volkswagen is considering an ‘audacious bid’ for the Porsche car business.
An old Porsche, er... Volkswagen
The ongoing saga centres on two dynastic families the Piëchs and the Porsches, who between them own the Porsche SE holding company and a 50.76 percent stake in Volkswagen.
Head of the Piëch clan, Ferdinand, is grandson of the great Ferdinand Porsche. It has long been reported that Piëch’s ambition is to integrate Porsche into the VW Group business, so this could be his moment of triumph.
The FT story says the takeover has been proposed as one possible solution to problems the Porsche automotive business may have financing its own €9bn debt.
Discussion
All this smells fishy but it could confirm the rumours of the ousting of the CEO http://www.pistonheads.com/gassing/topic.asp?h=0&a...
porsche owns VW. porsche is valued higher than before. Now if VW wants to buy porsche, porsche is valued even higher. Now porsche can sell a small stake for a much higher price than before they owned VW!!!! small sell off of porsche will make the family so much money simply by allowing their own investments to invest in them??
BBS-LM said:
I would like to know why these two companies aren't in the s
t like every other car company out there, or are they?
Profit margins on Porches for the last 15 years now have been very very strong & reall since the 996 Porche & Boxter they really have not had a sals flop every new model has really nailed the target market. Even the fugle Cayanne is a massive sales success.t like every other car company out there, or are they?Porsche made big bucks (more than through car manufacture/sales) through share dealing in Volkswagen. This resulting in the city boys calling foul.
I wouldn't be surprised if this is a game being played for either share price gain (through rumour) or actual financial gain through managing finances.
Not only do they make good cars but they have recently been very financially clever. Which is fine when it is working in your favour...........
I wouldn't be surprised if this is a game being played for either share price gain (through rumour) or actual financial gain through managing finances.
Not only do they make good cars but they have recently been very financially clever. Which is fine when it is working in your favour...........
There are three entities here, not two, which is causing the confusion.
Porsche is actually a holding company, which owns many businesses, one of which is Porsche Cars.
The holding company took on a lot of debt to buy up Volkswagen. By selling Porsche Cars to Volkswagen, they will still own 50% of Porsche Cars, since they control 50% of Volkswagen.
However, they will release cash from the healthy Volkswagen, into the Porsche Holding Company, so they can service their debt obligations.
This is essentially "Financial Engineering," something the Porsche Holding Company has been very good at in the last few years.
The really interesting bit will come towards the end of June, when the option contracts it holds with numerous investment banks expire...
(When I say "really interesting" I understand I might be a bit nerfy on this one...)
Porsche is actually a holding company, which owns many businesses, one of which is Porsche Cars.
The holding company took on a lot of debt to buy up Volkswagen. By selling Porsche Cars to Volkswagen, they will still own 50% of Porsche Cars, since they control 50% of Volkswagen.
However, they will release cash from the healthy Volkswagen, into the Porsche Holding Company, so they can service their debt obligations.
This is essentially "Financial Engineering," something the Porsche Holding Company has been very good at in the last few years.
The really interesting bit will come towards the end of June, when the option contracts it holds with numerous investment banks expire...
(When I say "really interesting" I understand I might be a bit nerfy on this one...)
I don't see how this would be possible without the agreement of both parties as surely with a majority shareholding surely Porsche could veto the purchase. I suppose VW could play them at their own game and accumulate Porsche AG shares on the open market but something tells me they may cotton on to that little ruse.
c_seven said:
I don't see how this would be possible without the agreement of both parties as surely with a majority shareholding surely Porsche could veto the purchase. I suppose VW could play them at their own game and accumulate Porsche AG shares on the open market but something tells me they may cotton on to that little ruse.
Since Porsche owns more than 50% of Volkswagen, they have control over this. If the Porsche Holding company had no cash flow problems, and Volkswagen had plenty of cash, they could buy up Porsche shares, and lock them away, thereby increasing the family holding of the company.Since Porsche Holding Company Shares are "Preferential" and have no voting rights, this wouldn't increase the strength of the family in the voting room, but would increase their % ownership of the company.
However, the Porsche Holding Company has needs to release some cash from Volkswagen, and this is a great way to do it without giving away too much...
(Not sure if Lower Saxony can veto this trade though.)
louiebaby said:
There are three entities here, not two, which is causing the confusion.
Porsche is actually a holding company, which owns many businesses, one of which is Porsche Cars.
The holding company took on a lot of debt to buy up Volkswagen. By selling Porsche Cars to Volkswagen, they will still own 50% of Porsche Cars, since they control 50% of Volkswagen.
However, they will release cash from the healthy Volkswagen, into the Porsche Holding Company, so they can service their debt obligations.
This is essentially "Financial Engineering," something the Porsche Holding Company has been very good at in the last few years.
The really interesting bit will come towards the end of June, when the option contracts it holds with numerous investment banks expire...
(When I say "really interesting" I understand I might be a bit nerfy on this one...)
OK, that makes sense (a bit). Basically, then, it's a bit like a really complicated Sudoku puzzle?Porsche is actually a holding company, which owns many businesses, one of which is Porsche Cars.
The holding company took on a lot of debt to buy up Volkswagen. By selling Porsche Cars to Volkswagen, they will still own 50% of Porsche Cars, since they control 50% of Volkswagen.
However, they will release cash from the healthy Volkswagen, into the Porsche Holding Company, so they can service their debt obligations.
This is essentially "Financial Engineering," something the Porsche Holding Company has been very good at in the last few years.
The really interesting bit will come towards the end of June, when the option contracts it holds with numerous investment banks expire...
(When I say "really interesting" I understand I might be a bit nerfy on this one...)
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