ORIGINAL: pboldmonts
I thought this was a Porsche forum. Did I miss something?
http://www.ft.com/cms/s/0/7770ee10-e933-11dc-8365-0000779fd2ac.html [
]
March 4, 2008
![[FONT=verdana,geneva"]](/forum/styles/default/pcgb/space.gif ". [FONT=verdana,geneva\"]")
Porsche deal with VW paves way for German auto industry giant
Roger Boyes in Berlin
Porsche approved plans to take a majority stake in Volkswagen (VW) yesterday as part of a massive shake-up of the European car industry.
Earlier yesterday, Volkswagen, which already owns Audi, Skoda, Seat, Bentley, Bugatti and Lamborghini, took over Scania, the Swedish lorry firm. The Porsche supervisory board approved a plan to boost Porsche's 30.9 per cent stake in VW, already Europe's largest car manufacturer, by a further 20percent.
"Our aim is to create one of the strongest and most innovative automobile alliances in the world, able to measure up to the increased international competition," Wendelin Wiedeking, chief executive of Porsche, said.
At yesterday's closing prices, Porsche will have to find €10 billion (£7.6 billion) to close the deal. Neither this, nor regulatory approval, is likely to prove a problem.
The Porsche takeover of VW represents the realisation of a dream for both Dr Wiedeking and Ferdinand Piech, a member of the Porsche family and a former VW chief executive.
The move may have been delayed to allow for the end of the VW corruption trial, during which Mr Piech denied any knowledge of sleaze and kickbacks to high-living workers' representatives at Volkwagen.
When the Porsche takeover is complete - most insiders believe that the deal will be finished by July - both the sports car manufacturer and VW will become part of Porsche Automobil Holding SE.
Its supervisory board will have worker directors from both Porsche and Volkswagen. This is just one of many precautionary measures to prevent the sheer size of Volkswagen dominating slimline Porsche.
Porsche began to show interest in VW when the European Commission toppled a law that limited the size of stakes in the Wolfsburg behemoth.
At the time, this was criticised as an attempt by a German company to block a possible foreign takeover and subsequent break-up of VW.
There was a more telling criticism by investors and media observers: that interweaving Porsche and Volkswagen would, in effect, create a German version of British Leyland, the broad spectrum national car and heavy vehicle manufacturer of the 1970s.
As far as German commentators are concerned, Leyland sounded the death knell of the British car industry. Porsche has worked hard to dispel these fears and while VW is growing - the majority stake in Scania, priced at around €2.88 billion, could be followed by a VW takeover of MAN - VW and Scania executives stress that the Scania brand will continue and that this is about forming strong alliances.
Porsche has a similar approach to its VW takeover. Brands are to stay intact.
Porsche's progress
Headquarters: Stuttgart, Germany
Chief executive and chairman of management board: Wendelin Wiedeking
Employees: 11,571
Revenue: €7.4 billion (£5.2 billion) (2006-07)
Market cap: €19.9 billion (£15.2 billion)
Models: 911, Boxster, Carerra GT, RS Spyder, Cayenne
Founded: 1931.
In 1934 Ferdinand Porsche receives an order for the design and construction of a People's Car (Volkswagen).
He dies in January 1951 aged 75.
In 1962 the 50,000th Porsche, a 356 B, rolls off the production line.
In 1972 the company floats on the German stock exchange, under the leadership of Ferry Porsche, son of Ferdinand.
In September 2005 the company announces a bid for 19 per cent of Volkswagen, costing €3.3 billion (£2 billion). The move is seen as a way of preventing Volkswagen from falling prey to a hostile takeover.
In November 2006 Porsche announces that it has increased its stake in Volkswagen to 27.4 per cent and hopes to raise it to 29.9 per cent. Porsche insists that it has no plans to attempt to take more than 30 per cent of the business. Porsche raises its stake to 31 per cent in March 2007 but still denies that it wants to take control of Volkswagen. In line with German law, when a firm acquires more than 30 per cent of another it must submit a takeover bid.
In June 2007, Porsche's bid fails
Volkswagen's journey
Headquarters: Wolfsburg, Germany
Chairman of management board: Martin Winterkorn
Employees: 325,000
Revenue: €109 billion (£83 billion) (2007)
Market cap: €59.43 billion (£45.38 billion)
Brands: Volkswagen, Audi, Bentley, Bugatti, Lamborghini, Seat, Å koda
Founded 1937: the factory built to produce the People's Car is commandeered for Germany's war effort, producing armaments.
At the end of the Second World War, the factory is captured by the Americans and transferred to the British and, under the command of Major Ivan Hirst, Volkswagen begins producing cars again.
In 1949 it is handed back to the German government and begins to expand its operations worldwide.
In 1955 the millionth Volkswagen rolls off the production line and the company is privatised in 1960.
It buys Audi in 1965.
In 1986 the company acquires Seat, of Spain, before going on to acquire Bentley in 1988, as well as Bugatti and Lamborghini. Å koda is bought from the Czech government in 1990.
In April 2000 it acquires 18.7 per cent of the shares and 34 per cent of the voting rights of Scania. The Golf overtakes the Beetle as Volkswagen's biggest-selling car, passing 21,517,415 units. To stave off hostile takeover, the group takes a 15 per cent stake in MAN, the lorry and diesel engine manufacturers, in October 2006
