Volkswagen ’s stock is up nearly 80 percent today thanks to Porsche ’s announcement that it plans to increase investment in the automaker from 42.6 percent to 75 percent by the end of 2009. Porsche Automobil Holding SE announced yesterday that it had increased its share in Volkswagen to 42.6 percent.
“The goal remains, as long as the financial conditions are right, to increase [the stake] to 75 percent in 2009 and clear the way for a controlling stake,” Porsche said yesterday in a press release.
The deal is certain to raise objections from the German state of Lower Saxony, which owns just greater than 20 percent of Volkswagen . The European Union is pushing to overturn the law that allows the state to have a blocking right.
