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farina said:
here is the source:
http://www.spiegel.de/wirtschaft/
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Stuttgart - Federal Minister for Economic Affairs Wolfgang Clement (SPD) called the announced entrance of Porsche with Volkswagens good signal for the domestic industry. "the intended participation of Porsche with VOLKSWAGEN is well good for both enterprises and for the location Germany", commentated Clement today. It is glad that with Porsche an investor thinking on a long-term basis wants to enter with the Wolfsburger autocompany.
After an appropriate message MIRROR had today confirmed Porsche to want to acquire 20 per cent of the capital stock of Volkswagens. When reason for the unexpected chess move, which would cost the natives of stuttgart after present Volkswagen share quotation to approximately three billion euro, called Porsche boss Wendelin Wiedeking the position, which had VOLKSWAGEN for Porsche as development partner and a supplier. Besides it wants to make a hostile takeover of VOLKSWAGEN in this way impossible through third.
Praise came also from the Prime Minister of Baden-Wuerttemberg Guenther Oettinger. It rated the planned entrance as courageous step to the safety device of jobs. "with the participation will on a long-term basis jobs in Baden-Wuerttemberg and Lower Saxony secured", let the CDU politician about the state chancellery in Stuttgart communicate. It is a "courageous and farsighted commitment" from Porsche. "this share acquisition strengthens all possibilities of the co-operation of Porsche and Volkswagen with the research and development of future vehicle generations", judged Oettinger. The raid of Porsche shows besides that hostile takeovers of the German industry could successfully be repelled.
Also Volkswagen reacted pleased to the announcement. A stable shareholder structure is very important for an automobile business put on on a long-term basis, said Volkswagen speaker franc dormer in wolf castle. By a participation of Porsche past co-operation between VOLKSWAGEN and Stuttgart sportscar manufacturers additionally one strengthen.
The industrial union metal sees the planned Deal likewise positive. "that is well good for the enterprise and for the location Germany", said trade union speaker Georgios Arwanitidis of the "Frankfurt round rundschau". The entrance of Porsche as a large shareholder with VOLKSWAGEN is the "logical continuation" of good co-operation between the two autofarmers in the past years. From view of the industrial union metal it is to be welcomed that thereby a hostile takeover is made more difficult.
The country Lower Saxony as a shareholder largest with distance welcomed the planned entrance the Porsche AG with Volkswagens likewise expressly. "the federal state government of Lower Saxony is pleased about the interest the Porsche AG, large shareholder the VOLKSWAGEN AG to become", was called it in one in Hanover spread report. In the plan a large chance for the automobile country Germany lies regarding quality, image and technical innovation. "we are in good discussions", explained the federal state government. "the country stands to its commitment with Volkswagens."
Lower Saxony holds at present approximately 18.2 per cent of the shares of Volkswagens. By the Volkswagen law of 1960 is besides the controlling influence of the country on all business decisions in wolf castle secured. Exactly this special role does not want to accept the European commission any longer and complains therefore before the European Court of Justice (EuGH). If Brussels should become generally accepted, a commitment of Porsche would be an effective protection from hostile takeovers. At present two US investment companies with approximately ten and approximately five per cent are to the country Lower Saxony the largest shareholders with of Europe largest autofarmer. The companies Porsche and VOLKSWAGEN cooperate already both in production and in the development.
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Porsche, the world's most profitable carmaker, is planning to become the largest shareholder in Volkswagen through a stake of 20 per cent in a surprise move that will change the face of the German automotive industry.
The purchase, costing at least Euro 3.3bn based on Friday's closing price, will help secure VW against the prospect of a hostile takeover and strengthen the independence of Porsche, a family-controlled company.
It underlines the relative financial strengths of the companies as Porsche, which sold 88,000 cars last year, takes a stake in Europe's largest carmaker, with sales of 5.1m vehicles but a loss from its main VW brand.
Wendelin Wiedeking, Porsche's chief executive, said: "This 'German solution' we are seeking is an essential prerequisite for the stable development of Volkswagen". He highlighted the importance of the relationship between the two companies: VW helps manufacture Porsche's Cayenne and they are co-operating in the development of petrol-electric hybrid engines.
Ferdinand Piëch, VW's supervisory board chairman and one of Porsche's largest shareholders, is seen as a main driver in the deal.
Both VW and Lower Saxony, the local state that is VW's largest shareholder with an 18 per cent stake, welcomed the move. Porsche underlined that "under no circumstances" would it consider a takeover of VW.
"It looks like the old habit of a German industrial solution," said Jürgen Pieper, analyst at Bankhaus Metzler. "In the short-term Porsche's investors will dislike it but it could make sense in the long-term."
Porsche will finance the deal out of its large cash pile. It has already bought a stake of under 5 per cent in the market and is eyeing the 13 per cent VW owns.
Merrill Lynch is advising Porsche.
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GM Austin said:Quote:
farina said:
here is the source:
http://www.spiegel.de/wirtschaft/
Google translation of that article:
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The country Lower Saxony as a shareholder largest with distance welcomed the planned entrance the Porsche AG with Volkswagens likewise expressly. "the federal state government of Lower Saxony is pleased about the interest the Porsche AG, large shareholder the VOLKSWAGEN AG to become", was called it in one in Hanover spread report. In the plan a large chance for the automobile country Germany lies regarding quality, image and technical innovation. "we are in good discussions", explained the federal state government. "the country stands to its commitment with Volkswagens."
Lower Saxony holds at present approximately 18.2 per cent of the shares of Volkswagens. By the Volkswagen law of 1960 is besides the controlling influence of the country on all business decisions in wolf castle secured. Exactly this special role does not want to accept the European commission any longer and complains therefore before the European Court of Justice (EuGH). If Brussels should become generally accepted, a commitment of Porsche would be an effective protection from hostile takeovers. At present two US investment companies with approximately ten and approximately five per cent are to the country Lower Saxony the largest shareholders with of Europe largest autofarmer. The companies Porsche and VOLKSWAGEN cooperate already both in production and in the development.
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Fanch said:
Thanks for the news Farina,
I am surprised by the lack of reaction of this post!
It is monumental!
Porsche becomes the first shareholder of the group in front of the lander of Sax.
Which means, they will in the mid term control the future of Brands like Lamborghini and Bentley.
What a amazing success story, from a family company on the verge of bankrupcy less than 10 years ago to most successful car company in the world.
Little Porsche now has control over VW, Audi, Lambo, Bentley, Seat, Skoda, etc.
They will be the green light approvers for new models!
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A spokesman for Porsche looked to calm concerns that the move may be a prelude to a full-blown takeover move.
"The stake will in no case reach the level at which Porsche would have to make a public offer to take over VW," the company said.
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GM Austin said:
...There is something more about the "Volkswagen Law" that the European Court is expected to rule on in 2007. I don't understand that.
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sdy284 said:
PORSCHE DROPS PLANS TO BUY VW <---click the link