VW rejects Porsche's takeover bid
When Porsche decided to exercise its option to purchase more VW stock, its stake was raised to over 30%. That triggered a German law that required the low-volume luxury automaker to launch a bid for all outstanding public shares of Europe's largest automaker. Usually when one company wants to take over another, they offer a stock buyout price that is equal to or greater than the actual market value, but Porsche only offered 101 Euros, even though the stock is trading at about 112 Euros.
VW shareholders unanimously rejected Porsche's offer, citing the offer price wasn't equal to the value of the company. We don't know how much Porsche really wanted to own all of VW, but we're sure they like the fact that they earned $2.75 billion last year due mostly to their partial ownership of Volkswagen.
[Source: Yahoo]
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Reader Comments (Page 1 of 1)
VAG 5:15PM (5/14/2007)
I dont think it was porsche's intention to buy out VW. They just wanted more stocks and the law required if you own x amount you must make bid, hence the low offer that would be rejected.
Why bother owning a company outright when you own a good percentage of it anyways?
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Barney 10:26AM (5/13/2007)
I agree with VAG. A low bid would insure Porsche followed the law but didn't end up buying a company they didn't want.
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Yago bal 4:16PM (5/13/2007)
"We don't know how much Porsche really wanted to own all of VW"
Of course you do: they said over and over that they were not interested in taking over VW, this offer was a legal requirement, and that they offered the minimum possible by law, and didn't expect any of the VAG shareholders to sell for that ridiculous price... Where have you been?
But the fact that they were not interested to take over VAG right now doesn't mean that they will not be interested in the future...
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