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Porsche likely to make takeover bid for Volkswagen

03/26/2007, 11:52 AM

By admin

Porsche plans to increase its stake in Volkswagen to 31 percent — a move that will force the sports car maker to make a formal bid to acquire all of VW. German law requires Porsche to make a takeover bid if its stake in VW exceeds 30 percent.

“Porsche is firmly convinced that a closer bond with VW through an increase of the stake to more than 30% of the Volkswagen ordinary shares will produce benefits for both partners without diluting or indeed endangering the identity of Porsche,” Porsche said in a statement to investors and the media. “Quite the contrary: Porsche will perform its economic and social role even more strongly.”

Porsche will likely present the lowest offer it can legally make — roughly $134 per share, rather than the full $156. A Porsche spokesman told the Wall Street Journal his company doesn’t expect shareholders to accept the bid, but Porsche is open to a buyout at that price point.

Rather than taking over VW, Porsche aims to secure its relationship with the automaker by preventing a hostile takeover by any other company. If Porsche is able to increase its stake to 31 percent — even without acquiring all of VW — it will effectively prevent a takeover by anyone else. That’s because the German state of Lower Saxony owns 20 percent of Volkswagen, and it shares Porsche’s desire to keep VW out of foreign or competing hands. Combined, the two will have a stake of at least 51 percent in VW.

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03/26, 11:55 AM

posted by:

TOZO

This is going on, and yet those who don’t know any better still think that VW owns Porsche right now. Other way around!

03/26, 12:01 PM

posted by:

HoosierHero

Great, then we can see the New Beatle with almost no significant outward changes for 40 years like the 911.

03/26, 12:03 PM

posted by:

F451

This seems like a natural evolution of matters.

03/26, 12:05 PM

posted by:

TOZO

Porsche should just buy Chrysler Group or something.

03/26, 12:12 PM

posted by:

BAMF

as long as they dont do anything to disturb bugatti, lamborghini, or the audi R8. i’m totally okay with this.

03/26, 12:28 PM

posted by:

Renton

I want my lightweight cheap Bugatti still.

03/26, 12:35 PM

posted by:

Andre Neves

It’s about time.

03/26, 1:03 PM

posted by:

europerspective

Porsche will not be interested in meddling in VW, they just want to make sure that nobody else snaps up VW, while they’re vulnerable. Porsche need to be sure that the Cayenne platform is safe.
The Cayenne is a huge cash cow for Porsche, it accounts for 50% of their sales and the margins are huge. They don’t want to have to front up for their own platform, they’re happy to keep punting out someone else’s car with their badge on it to dumb yuppies as long as it allows them to concentrate on what they really want to build.
I can’t imagine they are going to be too keen about helping VW pour money into their Bugatti wet dream though, not sure we’ll see any more of those.

03/26, 1:51 PM

posted by:

Madcapp

The only thing I don’t like about this whole deal is that it may kill sportier niche models like Volkswagens Concept R, because it would be direct competition to the Boxter. Last I heard was the Concept R was green lighted.

03/26, 2:03 PM

posted by:

Aston Martin

Wow. A sports car maker overtaking a huge, globally-known automaker. That means porsche will be related to Lamborghini and Bugatti.
Europerspective is right, the also want to keep their Cayenne platform safe. It makes up for a large percentage of luxury SUV sales. I f the owners were offered a less ugly alternative, they would go for it. Any other company making a Cayenneish SUV would make it look better, and Porsche would only have brand image a selling point.

03/26, 2:06 PM

posted by:

gsh

exactly Madcapp. the way i see it, this is a hostile takeover. porsche has slowly and steadily been acquiring shares of VW meanwhile stating that they have no intention of buying VW and that they are merely protecting their R&D partner from foreign takeover. if anything, porsche will use VW to expand the Cayenne which, as already stated, makes tons of money for porsche. im not sure whats going on with porsches future plans, but certaintly they dont need a whole other company to ensure future 911 models. i think porsche is looking to introduce more models in the near future.

03/26, 2:17 PM

posted by:

A4

looks like a hostile takeover to me. anything competing with porsches cars which are coming down the pipeline now will be taken out back and shot to protect porsche.

03/26, 2:21 PM

posted by:

jdepould

Isn’t the 4 door Porsche that’s in the works using a lot of VW group parts?

03/26, 2:21 PM

posted by:

whoopee

well porsche, let me give you my 2 cents on VW

who was the idiot who decided the touareg’s battery should be under the driver seat?

hey vw dealer, i need a boost, how do i get to the battery?

you don’t, you have to get a tow into the dealer

TOUAREG = LEMON

no wonder craigslist is full of used touaregs, almost as many as the ALL TIME LEMON – range rover

when i see people driving cayennes, i don’t get materialistically envious, i snicker because i know this is the same core piece of s*&t they market as they touareg

03/26, 3:13 PM

posted by:

CTS DRIVER

the cayanne takes away a certain charm from the porsche brand, after all its a turbo rebadge, even gm could have done that. just when i stopped hearing people complain about porsche being a high powered vw, they make a high powered vw. why dont bmw start licensing cobalts and do the same.

03/26, 3:35 PM

posted by:

Madcapp

Whopee you’re such a retard. Auto manufacturers place the battery in all sorts of places for better weight distribution and handling. That’s why BMW puts the battery in the trunk….but there’s always redundant termainals under the hood just for jump starting. You wouldn’t know anything about BMWs though. Corvettes had the battery under the floor behind the seat. Here’s the Touareg FAQ, jump starting with refrence to underhood terminals is section 4.5

http://www.touaregfaq.com/

Now its time for you to stand in the corner with a dunce cap on.

03/26, 3:36 PM

posted by:

gbb

Yawn, who cares.

03/26, 4:35 PM

posted by:

Blakkarr

Wait! Didn’t VW own Porsche at one time?

03/26, 5:04 PM

posted by:

TOZO

Yeah, like 50 years ago I think.

03/26, 6:44 PM

posted by:

RLX02

vw’s sinking…again.

good decision porsche.

03/26, 7:59 PM

posted by:

tiga901

At the end of the day, it is a great investment for Porsche. At the prices that they will exercise the tender, it is dirt cheap. They will be able keeep VW in the family and thwart any outsiders buying VW lock stock and barrel.

03/26, 9:17 PM

posted by:

anderson_b76

Drive a Porsche, and drive a Audi/VW…then consider how competitive they are to BMW/Mercedes. Porsche blows them away, and Audi/VW get blown away. It’s about time somebody with a recently successful racing heritage (in the last 20 years) put the bite back in Audi/VW….watch out BMW/Mecedes!

03/26, 9:55 PM

posted by:

camero

This is wonderful. I would love to see this super brand group created. I like the concept of this all conquering super brands like lambo, bugatti, bentley, and audi all being together.

I know VW allows for the individual brands to grow, and become extravagant, this definetley wouldnt hurt porsche like it would if it would’ve happened with another major brand group. If anything it would benefit from the stew of technology already available in the brand group and also contribute to it.

You can already see it in this current relationship; like the platform sharing, and i read somewhere that upcoming porsche engines will have direct fuel injection. Which i’m guessing is donation of audi’s FSI technology. Just guessing because i know how Vw shares technology within it , not certain so don’t go start ripping on me.

Gallardo shares alot of parts with the r8
Direct fuel techlogy is also shared with VW, rebadged TDI
Re badged audi MMI system in lambos
DSG gearbox is shared all the way from the bugatti to the golf
Toureg platform
and much more i guess you see my point that this would only benefit porsche
This will be real competition for Daimler and The Bavarians

03/26, 9:56 PM

posted by:

autonutt

icedog.. this is a purely strategic move to protect their shared investment in the Touareg/Cayenne/Panamera platforms, it won’t affect the VW/Audi product lines one bit. Tiga is exactly right.

03/26, 10:31 PM

posted by:

camero

to Autonutt and icedog……This is NOT just a strategic move to protect their shared investment in the Touareg/Cayenne/Panamera platforms. This is the works of an economic genius, that is the Porsche CEO, Wiedeking. He seeing the potential of VW as a high volume auto manufacturer. He sees that he can manipulate it using Porche’s efficient manufacturing techniques to return high profits. If you read his earlier statements you would know this, i don’t think the cayenne platform is worth a 100 billion dollars or whatever hes paying for the takeover. His basically just covering his back or better yet porsches’s back

03/27, 6:32 AM

posted by:

55amg

ok, now they can turn the Beetle into a cheap, baby version of the 911.

03/27, 7:02 AM

posted by:

Gogogodzilla

I’ll definitely be in favor of this one.

And I can just imagine the pleasant surprise of finding Porsche performance engineering placed into the VW GTI…

Drool.

03/27, 6:00 PM

posted by:

1c3d0g

Autonutt: I sure hope you’re right, ’cause I have a very bad feeling about this!

03/27, 7:40 PM

posted by:

camero

1c3d0g: or better yet a beetle

04/04, 1:01 AM

posted by:

Posh Orange County

Seems like Porsche is focused on the big fish these days.

 
 
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