Porsche announced on Sunday its intention to raise its stake in VW to 75% by 2009 in the German sportscarmaker's continued bid to gain a controlling share of Europe's largest automaker.
Porsche continues its bid to gain a controlling interest in VW, announcing on Sunday that it will raise its stake in Germany's largest automaker from its current 42.6 % to 75 % by 2009. The company also said it would reach a 50 % stake in VW by December. Porsche also owns another 31.5% of VW in cash-settled options, which is not the same as direct equity stake.
Under German law, control of a company requires 75% share of the vote at any given stockholder meeting. But VW has traditionally required an 80% share, giving the government of Lower-Saxony, which owns a minority stake in VW, addtional power over the company. The German state of Lower-Saxony, along with the worker's council which represents VW's organised labor, is opposed to Porsche taking control of VW.
VW's stock has been hit by the volatility caused by the current financial crisis, with its stock soaring and then falling again in recent weeks, but has increased in value by 77% over the last 12 months due to investor support for Porsche's takeover bid.