Porsche requests approval for an increased stake in VW

Filed under:
News, Porsche
on 06/24/2006

Source: Porsche AG

Dr. Ing. h.c. F. Porsche AG, Stuttgart, is intending to acquire a further 3.9 per cent of the ordinary shares of Volkswagen AG. To this end, the company has filed an application to the German Federal Cartel Office to request its approval of the planned increase of its stake. Acquisition of the shares would increase the sports car manufacturer’s holding in VW from the present 21.2 per cent to 25.1 per cent of the voting rights, meaning that it would obtain a controlling minority in the Group. The Stuttgart company anticipates that the Cartel Office will approve its plans without delay. Porsche would be able to implement the intended stock purchase as soon as approval is granted. Notwithstanding, a decision as to when the measures to increase its stake will be put into place has not yet been made.

Porsche AG has been contemplating raising its stake since autumn 2005. In order to prevent any price risks, the company has concluded forward-rate agreements, which enable the ordinary shares to be purchased at a fixed price. Even without exercising this option, the sports car manufacturer is the largest single shareholder in Volkswagen AG.