Comments on: VW planning to raise more than $14B through new share offering

By: Borat

Borat — Sat, 17 Oct 2009 21:41:18 +0000

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 .

By: mitzo

mitzo — Fri, 16 Oct 2009 22:33:55 +0000

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

By: armstealer

armstealer — Fri, 16 Oct 2009 21:05:28 +0000

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.

By: ktulu

ktulu — Fri, 16 Oct 2009 20:04:13 +0000

good investnebt

By: johnnycanuck

johnnycanuck — Fri, 16 Oct 2009 18:58:21 +0000

hey… I resemble that remark!

By: leftwingagenda

leftwingagenda — Fri, 16 Oct 2009 18:44:33 +0000

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…

By: A4

A4 — Fri, 16 Oct 2009 18:29:36 +0000

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.

By: Borat

Borat — Fri, 16 Oct 2009 17:21:29 +0000

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.

By: arena

arena — Fri, 16 Oct 2009 17:12:54 +0000

good question, johnny. and great post DB9

By: ICEMAN

ICEMAN — Fri, 16 Oct 2009 17:01:37 +0000

watsup GAY4, word to yo mama.

By: johnnycanuck

johnnycanuck — Fri, 16 Oct 2009 16:42:06 +0000

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

By: DB9

DB9 — Fri, 16 Oct 2009 16:36:14 +0000

>>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:-)

By: A4

A4 — Fri, 16 Oct 2009 16:03:20 +0000

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