- Jun 23, 2006
Porsche wants a bigger piece of Volkswagen
Porsche AG is on its way to becoming a blocking minority stakeholder in Volkswagen AG, attempting to raise its stake in the struggling automaker by 3.9 percent of total shares to a total stake of 25.1 percent. The only thing standing in its way at the moment is clearance from the German Cartel Office.
Porsche, which is already the largest single stakeholder in VW, will be able to exert more influence over Volkswagen once the deal is done. As German laws are relaxing on how much of a company an individual stakeholder can own, Porsche's move is being looked at as a way to ensure that Volkswagen doesn't become a takeover victim.
[Source: Forbes, Reuters]