Porsche launches official VW bid
Porsche, the German maker of luxury sports cars, said on Monday it had launched an official bid to acquire Volkswagen, Europe's largest auto manufacturer.
Stuttgart-based Porsche announced in late March that it would exercise an option to buy an additional 3.6-percent stake in VW.
The additional shares raised Porsche's interest in VW to 30.9 percent, effectively obliging it under German law to launch a public takeover for all outstanding VW shares.
Under an offer to run until 29 May Porsche said it would propose €100.92 per ordinary share, which is well below VW's current share price of around €112, and €65.54 for priority dividend shares.
Analysts have predicted that few shareholders were likely to take up Porsche's offer, adding that Porsche in effect has no intention of buying all of VW's share capital just yet.
They see the move as a clever way for Porsche to increase its stature in VW without being forced to pay for any additional shares.
Stuttgart-based Porsche announced in late March that it would exercise an option to buy an additional 3.6-percent stake in VW.
The additional shares raised Porsche's interest in VW to 30.9 percent, effectively obliging it under German law to launch a public takeover for all outstanding VW shares.
Under an offer to run until 29 May Porsche said it would propose €100.92 per ordinary share, which is well below VW's current share price of around €112, and €65.54 for priority dividend shares.
Analysts have predicted that few shareholders were likely to take up Porsche's offer, adding that Porsche in effect has no intention of buying all of VW's share capital just yet.
They see the move as a clever way for Porsche to increase its stature in VW without being forced to pay for any additional shares.
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