Volkswagen shares up after Porsche takes majority stakeJanuary 6th, 2009 - 11:48 pm ICT by IANS
Stuttgart (Germany), Jan 6 (DPA) Volkswagen (VW) shares rose sharply Tuesday, a day after sports carmaker Porsche announced it had acquired a majority stake in its German rival.VW shares climbed to 287.09 euros ($384) on the Frankfurt Stock Exchange, up 12.7 percent from Monday when Porsche disclosed it had increased its stake in Europe’s biggest carmaker to 50.76 percent.
The move gives Porsche a controlling say in Swedish commercial vehicles maker Scania and obliges it to make a takeover offer for the company.
But Porsche said it has no strategic interest in the Swedish company and is expected to present the lowest bid possible for its shares.
Porsche has said it plans to raise its stake in VW to 75 percent later this year, a move which would allow it to include Volkswagen’s assets and revenues in its own books.
It will also mean that key decisions are no taken by the VW board, but by the European Porsche Automobil Holding. This would enable Porsche to decide on new models and plant locations.
Coinciding with Porsche’s announcement, the company released figures which showed sales in its key North American market slumped by 24 percent last year.
Volkswagen sales in the US were down 3.2 percent in 2008 compared to the previous year.