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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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