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Porche's VW bid fails as expected

Jun 04 2007 19:40

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Porsche's VW takeover fails

 

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Stuttgart - Luxury car maker Porsche AG said Monday its offer to buy the shares it does not already own in Volkswagen AG expired with less than 1% of the stock offered for sale by investors.

Porsche was obliged under law to make an offer for the remainder of the company after boosting its stake beyond 30% earlier this year, the company said in a statement. Porsche has maintained that it has no plans to acquire Europe's biggest automaker outright.

The company offered €65.54 for each preferred share and €100.92 per ordinary share.

"Given that the current stock exchange price is higher than the offer price, the result was as expected," said chief executive Wendelin Wiedeking. "The completion of the mandatory offer is, amongst others, subject to approval by the relevant antitrust authorities and is not expected to occur prior to the end of June."

Porsche will pay for the tendered shares with existing cash resources.

Porsche lifted its stake in Wolfsburg-based Volkswagen in March to help shield the company from foreign takeovers. The company's other major shareholder is the German state of Lower Saxony, which holds a 21% stake.

Under German law, Porsche is now free to acquire further shares in Volkswagen until it reaches 50% at which point it would have to make another takeover offer.

 
 
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