VW is wrecking house bitch
ICEMAN’s favorite snack is 8==============D

>>According to Reuters, VW will ask shareholders in December to approve a plan to issue 135 million new shares. Per VW’s plans, the share offering would be completed by 2014, with the bulk of the new shares hitting the market by mid-2010.

VW’s plan only calls for the offering of preferred shares, ensuring voting stakes remain intact.<<

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“Only a Preferred Share offering” I’d wait to see the prospectus. Preferred shares generally have a Fixed dividend rate and/or special provisions such as warrants. If not structured properly VW runs the risk of going down the same road as Porsche. The future claims on cash-flow could be challenging. They want to do this in the current economic environment?/! Europe is prime for an overdue rationalization of manufacturers and rationalization of capacity. Amazing what you can do when you have the government, the State of Lower Saxony, as one of your major shareholders/protectors;-))

I guess risk aversion doesn’t carry the same weight at VW as everyone else these days?/!. As a long time buyer of VW and Audi I hope they know what they are doing; however, considering the history of the founding families and their control who knows:-/

DB9;-)

PS. Hey, I know… Buy Aston:-)

DB9, how does all this relate to the 12 billion worth of debt accrued by Porsche in their attempt to takeover VW?

watsup GAY4, word to yo mama.

good question, johnny. and great post DB9

I reckon they are slow learners and VW and did not picked up a lot from recent overextension displayed by US companies (GM, BoFA for example). They will have to sell a lot of cars to satisfy such large debt. Although it is the cheapest form of financing, VW does not expanding market share with acquisition of Porsche, which is in trouble of its own. MAN is a safe bet, but not at the cost of takeover.

Borat, they did just boost their sales 400,000 units in China and their numbers there are growing fast, as well as in the U.S.

as an investor, this is bad news…issuing more shares dilutes the value of current shares, since the market capitalization of the company hasn’t changed…basically the denominator has grown, but not the numerator…and 14B is not a small number….if this whole recession turns out to be W-shaped and not V-shaped, then this is also officially “a bad time” to try this…smells risky and/or desperate…kinda like johnnyc after a glass of maple syrup and a six pack of moosehead…

hey… I resemble that remark!

good investnebt

Dear Leftlane- I will work for you as a Moderator of these discussions for one test drive a month + health insurance. I can be reached here on the forum.

Is this to fund the building of more bulky and porcine Jettas and Passats in the US, effectively destroying their brand??

Lefty, you’ve got it. The truth of the matter the largest investor is state of Lower Saxony. I guess it is OK to screw some form of government .