Porsche takes control of Volkswagen
German sportscar manufacturer Porsche is pushing to take control of Volkswagen after taking a majority stake in the world's third biggest car companyPorsche upped its stake in VW from 42.6 per cent to 50.67 per cent yesterday, in a widely expected move.
The company had attempted to make the change late last year but was forced to delay the move because of unfavourable share prices.
The family-owned performance car brand has made no secret of its desire to take a 75 per cent stake in VW as it moves to strengthen its position long-term, thanks to the sales success of the Boxster and Cayenne in recent years.
Ironically Porsche had previously been worried about being taken-over by a larger company because it was focused on building the 911 in relatively low numbers.
There is a major stumbling block though for Porsche with the local state government of Lower Saxony holding a 20 per cent stake in VW. Under German law a 25 per cent stake holder can block strategic decisions but under a special ruling for VW/Lower Saxony that figure has been changed to 20 per cent.
Porsche has already engaged legal action in the European courts to try and have the law changed, but so far without success.
Interestingly Porsche's increased stake in VW means the company is now in position to take control of Swedish truck maker Scandia. VW holds a 69 per cent stake in the company and under Swedish law Porsche is now required to make an offer to take over.
Porsche maintains it has no interest controlling Scandia and will only offer the lowest price it is required to. Instead it is expected that rival truck brand MAN will form a partnership between Scandia and VW.
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