| The news of Porsche increasing its stake in | | | | Muntefering called as asset-stripping locusts. |
| Volkswagen to 30.9 percent didn't come as a surprise | | | | Porsche is also offering EUR100.92 an ordinary share |
| at all. Well basically since this is exactly what the | | | | for the rests of the company, 14 percent below the |
| automotive industry was expecting in the first place. | | | | close in Frankfurt on Friday which values Volkswagen |
| Although it may be hard to believe that such increase | | | | at EUR42.7 billion. German securities regulators will |
| of stake will not lead to a takeover but Porsche | | | | determine the minimum offer for VW's preferred |
| stressed that it plans to defend Volkswagen, | | | | shares. |
| Europe's largest automaker and producer of quality | | | | Last Monday, shares of Volkswagen decline by |
| VW motor mount---from any possible influence from | | | | EUR3.75 and closes at EUR113.95 in Frankfurt. On the |
| hedge funds and buyout groups. | | | | other hand Porsche increased by EUR6.52 to close at |
| It can be remembered that the last time that | | | | EUR1,121.45. |
| Porsche had increased its stake in Volkswagen it | | | | According to a statement released by the Porsche |
| stated that it is simply trying to guard its investment. | | | | last Monday, the company has exercised its purchase |
| And just recently the knight-in-shining 911 Carerra has | | | | option to raise its holdings from 27.3 percent to 30.9 |
| again raised its stakes to defend Volkswagen. But | | | | percent. Furthermore it plans to complete the |
| the main question now is: Does Volkswagen really | | | | acquisition of the shares on Wednesday. It should be |
| needs such guarding? Or is it Porsche's way of slowly | | | | noted that according to the German Law an investor |
| taking over Volkswagen? | | | | is required to make a takeover offer to all |
| Now that Porsche has purchased an additional stake | | | | shareholders once its holdings surpass the 30 percent |
| at Volkswagen it is to be expected that Volkswagen | | | | ceiling. |
| chairman, Ferdinand Piech whose family controls | | | | The benefit that Porsche obtained from bidding is the |
| Porsche will be able to increase his dominance at | | | | freedom to make Future Volkswagen stake |
| Volkswagen. Come to think of it starting from the | | | | purchases whenever it sees fit. After Porsche is |
| first time that Porsche bought a stake in Volkswagen | | | | through making its minimum legal bids to all |
| in the year 2005, Piech has gained enough power | | | | shareholders, German sports car manufacturer will no |
| which enables him to place Porsche executives on | | | | longer be required by law to present further |
| the board and oust the former chief executive to | | | | purchase offers to all stakeholders. |
| replace him with his favorite protégée | | | | Another analyst at Morgan Stanley in London, Adam |
| Martin Winterkorn. | | | | Jonas said, "Piëch and Wiedeking are looking at |
| German politicians and family controlled companies | | | | this as a 1,000-year investment. This isn't a hedge |
| have protested against the increased takeovers by | | | | fund making a trading investment that they'll get rid |
| venture firms which the German labor minister Franz | | | | of in a few years. |