Speculation over Porsche takeover of VW continues

Ever since Porsche began expanding its stake in Volkswagen a year ago, analysts and industry insiders have speculated the company might one day attempt to gain total control of VW.

According to Reuters the market is buzzing with rumors that Porsche, owned by the family of VW Chairman Ferdinand Piech, could decide to take over Volkswagen. Porsche's move to increase its equity capital by half was the most interesting part of Porsche's earnings announcement this week, said Sanford Bernstein analyst Stephen Cheetham.

"We believe this may presage a full bid by the company for Volkswagen, fulfilling Ferdinand Piech's evident wish to control the company ahead of a likely expiry of the Volkswagen law limiting any one shareholder to 20 percent of voting rights," Cheetham wrote.