Jan06
Porsche Now Controls Over 50% VW
FRANKFURT GERMANY, Porsche Automobile Holding Announced yesterday that it now holds 50.76 percent of Volkswagen which in turn generates a mandatory takeover of Scania Group .
Porsche Automobile Holding purchased an additional 8.16 percent worth of Volkswagen stock, about $8.5 billion dollars worth bringing it from 42.6 percent to 50.76 percent.
In earlier reports Porsche Automobile Holding stated it initially planned to raise its stake in VW to over 50 percent by year’s end 2008. New reports state that Porsche still planes to increase its stake in VW to at least 75 percent by mid 2009 as long as the market is favorable.
As a result of Volkswagen’s takeover on Monday, Porsche now has indirect control of Scania,
Since Volkswagen owned about 69 percent of voting rights of Swedish truck maker Scania, Porsche is required by Swedish law to make a mandatory takeover offer. In statements made earlier Porsche Automobile Holding stated it had no interest in Scania and is not interested in acquiring its shares But would consider a deal with German industrial conglomerate MAN LG who currently own about 20 present of voting rights in Scania, MAN’s strategic interest in Scania will possibly be beneficial for everyone.
Ironic, Volkswagen is the biggest shareholder in both MAN, AG and Scania Group.
About Scania Group.
The Scania Group is a Swedish based company that manufacturer of heavy trucks and buses as well as industrial and marine engines. The company also markets and sells a broad range of service-related products and financing services.
Scania is a global company with operations in Europe, Latin America, Asia, Africa and Australia.
About MAN AG.
MANAG is a German based company and one of the world's leading manufacturers of engineering equipment and commercial vehicles. MAN supplies trucks, buses, diesel engines, turbomachinery, as well as industrial services and holds leading market positions in all its business areas.
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