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bhp1 · 10th July 2008, 21:24

Due to several technicalities, PORSCHE takeover of VW has been delayed by months, but it appears the German sports car maker is inching closer towards a VW acquisition. European Union rules prevented a Porsche takeover in June due to a regulation that calls for a company be able to show an agreement or public bid for a majority share in a company before the European Commission will decide on such a matter.

To comply with the rule, Porsche will increase its stake in VW from 30.6 percent to 35.5 percent, effective September 2nd. The German automaker will then have to refile its proposal with the Commission.
Porsche submitted its original plans last month, but had to withdraw them due to the technicality.
In response to Porsche’s 4.9 percent bump in ownership, the state of Lower Saxony – VW’s largest current share holder – upped its stake in VW by 500,000 shares.
Once Porsche is given the all clear from the EU, it plans to raise its stake in VW to over 50 percent — which could happen soon after the September deal.

10th July 2008, 21:24	#15 (permalink)
bhp1 BHPian Join Date: Jul 2008 Location: PUNJAB Posts: 112	PORSCHE to acquire VW ! Due to several technicalities, PORSCHE takeover of VW has been delayed by months, but it appears the German sports car maker is inching closer towards a VW acquisition. European Union rules prevented a Porsche takeover in June due to a regulation that calls for a company be able to show an agreement or public bid for a majority share in a company before the European Commission will decide on such a matter. To comply with the rule, Porsche will increase its stake in VW from 30.6 percent to 35.5 percent, effective September 2nd. The German automaker will then have to refile its proposal with the Commission. Porsche submitted its original plans last month, but had to withdraw them due to the technicality. In response to Porsche’s 4.9 percent bump in ownership, the state of Lower Saxony – VW’s largest current share holder – upped its stake in VW by 500,000 shares. Once Porsche is given the all clear from the EU, it plans to raise its stake in VW to over 50 percent — which could happen soon after the September deal. Last edited by bhp1 : 10th July 2008 at 21:25.