Red Porsche
Porsche's Acquires 31% of Volkswagen
Porsche said this week in the AIADA newsletter that Germany's financial regulators have approved automaker Porsche's required takeover offer for Volkswagen, which it was obligated to make after acquiring more than 30% in the company.
Porsche has said it does not plan to acquire Volkswagen outright. USA Today reports that Porsche has improved its offer for preferred shares from 65.45 euros each to 65.54 euros. It is still offering 100.92 euros per ordinary share, which is more than 11% below the current market price.
Porsche triggered the mandatory takeover offer by raising its stake in Volkswagen, a car manufacturer that produces quality VW disc, a percent higher than 30. This was a move aimed at shielding the automaker from the possibility of a foreign takeover. The offer gives the company the chance to buy Volkswagen shares without making another takeover bid.
A German rule, the so-called "Volkswagen Law", that limits Volkswagen shareholder voting rights to a maximum of 20%, no matter how many shares are held, is expected to be ruled unlawful by the European Union. That ruling would have left VW exposed to takeover attempts. But with Porsche now holding 31% of the company and the German state of Lower Saxony a near-20 percent stake, the carmaker is now shielded.
However, analysts are starting to question the true motive of Porsche acquiring a 31% majority share of VW. Guido Reinking, an automobile publication editor speculates that VW Chairman Ferdinand Piech may want to make VW a wholly owned subsidiary of Porsche in an effort to protect and maintain the family business because Piech's family controls 100% of Porsche.
Despite the speculation, Reinking urges that Germany's Lower Saxony who owns 20% of VW should relinquish its interest in light of the Minister President of Lower Saxony Christian Wulff (CDU) considering increasing its stake to 25% which will cost $1 billion. The editor wrote that Lower Saxony's involvement with the auto maker has been as damaging as Volkswagen’s struggle with IG Metal, a German metal workers union. The red tape of VW management, unions and politicians has suffocated VW by preventing much needed restructuring.
Originally, Lower Saxony's move into the auto business was intended to protect VW from foreign takeover with their blocking stake. But, Reinking wrote the latest majority position of Porsche makes that directive null and void as soon as the European Court of Justice will overturn the so-called “VW law” that limits the voting power of VW shareholders to 20 percent regardless of the size of the stake they hold. Repeatedly, the CDU calls for less government and support for the German market which clearly is contradictory to Wulff's possible stake increase.
Reinking also speculates that Lower Saxony considering a stake increase in VW is politically motivated since Wulff gets more and more air time as a major VW shareholder. Reports say he would therefore use that exposure to boost his career as a politician. Reinking in his writings said German states should do many things to make the lives of their citizens more pleasant; that is to build roads and schools, reduce the tax burden, boost the economy, fight crime and protect the environment. And auto manufacturing is not one of them.
About the Author
Benjamin Hudson works as a supervisor at one of the top engineering firms in the business district of Louisiana. He is also a freelance journalist and has passion for anything automotive.
 |
 Large Red Gold Porsche 911 Car Embroidery e Patch 10  US $9.95
|
 Nice 1 43 Porsche 550A Spyder Red Cararama US $7.99
|
 Black Overmats Set Red Trim Porsche 924 944 911 964 996 US $75.87
|
 143 Scale Porsche 911 Carrera S Red Cararama US $9.86
|
 PORSCHE RED WHITE AUTOMOTIVE PATCH EMBLEM US $5.99
|
 OEM Porsche Touch up Paint Guards Red US $25.00
|
 Turbo Badge Porsche Mitsubishi FPV XR6 HSV VW Audi Red US $5.86
|
 PORSCHE CREST KEY RING FOB KEYCHAIN RED LEATHER NEW US $22.50
|
 Ninco Classic 50567 Porsche 356 A Speedster Red 1 32 US $69.99
|
 PORSCHE 911 914 MULTI PURPOSE RELAY RED 91161510801 US $18.95
|
 2 X NEW Boxster S Decal for Porsche 987 Side Doors Red US $29.99
|
 Porsche Crest Key Chain RED Key Ring Genuine Leather US $17.69
|
 Maisto Porsche Panamera Turbo Red 1 18 Diecast cars US $28.95
|
 AUTOART 77912 118 1964 PORSCHE 911 RED DIECAST MODEL CAR US $106.82
|
 ▀ BLACK RED WHITE Porsche Boxter 986 EURO TAIL LIGHTS ▀ US $129.00
|
 PORSCHE BOXTER 996 986 HANDBRAKE GAITER RED STITCH US $31.58
|
 2011 HOT WHEELS HOT ONES PORSCHE 917 HOTWHEELS HW RED US $3.99
|
 AUTOART 1 64 PORSCHE 911 997 CARRERA S RED US $9.50
|
 PORSCHE 911 Red 1996 Hot Wheels 590 US $3.99
|
 2 X NEW Carrera Decal for Porsche 911 996 997 998 Side Doors Red US $33.99
|
 Maisto 1 18 Porsche Panamera Turbo Metallic Red 36197 US $48.99
|
 143 Porsche 911 Carrera 4S 2001 red 400061072 1of3024 US $38.10
|
 2011 PORSCHE 911 997 GT2 RS Facelift Guards Red 1 18th scale US $249.99
|
 Adidas Porsche Design P5000 Mens All Sizes Red Black Brand New Shoes US $157.82
|
 CARARAMA PORSCHE 911 GT2 RED 1 72 BRAND NEW US $4.66
|
 Avon Hot Wheels Highway 35 Set Red Porsche in Box US $4.50
|
 PORSCHE RED WHEELS RIMS STICKER DECAL LOGO 911 BOXTER S US $7.77
|
 Porsche 911 Turbo GTS Red US $2.69
|
 NEW WOMENS PORSCHE MARTINI RACING T SHIRT RED US $47.00
|
 New Porsche Cayman S 134 Alloy Diecast Model Car Red B169d US $11.99
|
|
|
50th Anniversary James Dean Porsche Collectible Limited Edition Cookie Biscuit Cracker Treat Jar $59.00 James Dean Collection "James Dean 50th Anniversary Porsche" limited edition cookie jar. Excellent representation of the iconic movie star, James Dean, who casually enjoys a ride in a Porch convertible. He wears his classic motorcycle jacket, flashes his t... |
|
|
Porsche Snack Box- Kids $26.95 Adorable snack/lunch box with teddy-bear driven Porsche. Great kids gift.... |
|
|
1956 Porsche spyder Photo Mugs 1956 Porsche spyder James Dean replica.... |
|
|
Plano Molding 5232 Double Sided Stow N Go Organizer, Porsche Red $18.99 Need a place to put odds and ends? Need that storage for the small stuff such as screws or pen parts that have a tendency to multiply and occupy a lot more space if you dont contain them? This shop organizer is up to the task!... |
|
|
Littelfuse MAX50BP Maxi Fuse Red $4.49 MAXIFUSE 5 CDS/PACK 50A... |
|
|
Grill - 24W x 16H - Peel and Stick Wall Decal by Wallmonkeys $33.99 WallMonkeys wall graphics are printed on the highest quality re-positionable, self-adhesive fabric paper. Each order is printed in-house and on-demand. WallMonkeys uses premium materials & state-of-the-art production technologies. Our white fabric material is superior to vinyl decals. You can literally see and feel the difference. Our wall graphics apply in minutes and won't damage your paint or l... |
|
|
Redline $2.73 Riveting actioner in the vein of "The Fast and the Furious" follows an ace driver/aspiring pop star, with hopes of advancing her career, who gets caught up in a series of illegal high-stakes drag-racing competitions run by a group of millionaires. But when one of the tycoons threatens her family, she enlists the help of an Iraq War vet to settle the score. Nadia Bjorlin, Nathan Phillips, Eddie Gri... |
|
|
You are cordially invited? to Kristy's Sweet 16 $1.99 ... |
|
|
Porsche Design 8801 Available in three exicting colors, this half-eye shape is made from the highest optical quality materials with perfect craftsmanship and extraordinary style: these Porsche Design readers thoroughly redeine the most demanding requiremens for ready-made reading glasses. The astonishing lightness and ideal comfort of the Porsche Design Reading Tools are bound to impress. High-quality and anti-glare ... |
|
|
Porsche Design +2.50 Lenses Reading Tools Model P'8801 ~ Matt Black Frame/Red Color temples with lightweight Anti-Reflection coated lenses for incredible lightness and comfort in wear ~ +2.50 Lens Strength $249.00 Porsche Design +2.50 Lenses Reading Tools Model P'8801 ~ Matt Black Frame/Red Color temples with lightweight Anti-Reflection coated lenses for incredible lightness and comfort in wear ~ +2.50 Lens Strength... |
