| The increase of Porsche's stake from 27.3 | | | | Porsche combined with the 20.26 percent owned |
| percent to 30.9 percent at Volkswagen gives the | | | | shares of Lower Saxony totaling to 51.4 percent |
| German sports car manufacturer the right to a | | | | of shares at Volkswagen makes these two |
| takeover bid as required by the German law. | | | | shareholders more effective in protecting the |
| Luckily for Porsche, Volkswagen shares dropped | | | | company from any investors who may want to |
| by 4 percent to 113.21 euros ($150.91) in | | | | take control of the Wolfsburg-based automaker. |
| Frankfurt on Monday afternoon while the German | | | | Aside from protecting Volkswagen, Lower |
| sports car maker's share rose by 0.7 percent to | | | | Saxony has also assured that the jobs of tens of |
| 1,123 euros ($1,497). And as expected of Porsche | | | | thousands of its residents who worked for VW |
| is has cleverly made the minimum offering legally | | | | are safe. Porsche on the other hand, secures an |
| allowed of 109.20 euros (145.60) for each | | | | essential source of technology in which it has the |
| common share and 63 euros ($84) for each | | | | power to control costs. Like for instance the |
| preferred share. | | | | chassis used for Porsche Cayenne down to say |
| Porsche has already expected it that few | | | | VW spark plug wires that are used for the |
| investors would agree on their offered price. | | | | mid-size luxury sports utility vehicle are developed |
| After the takeover bid is complete it is probable | | | | in partnership with Volkswagen. |
| that Porsche will continue to increase its stakes in | | | | Volkswagen said in a statement that it welcomed |
| Volkswagen surpassing its present owned shares | | | | the step by Porsche to increase its take and |
| of 30.9 percent. However, if it plans to make | | | | explained that a "stable shareholder structure" is |
| another bid for VW it will have to exceed 50 | | | | vital to the continuous success of the company. |
| percent stakes. | | | | According to one unnamed source inside |
| What Porsche has done can be considered a | | | | Volkswagen, "We are protected against further |
| creative way of going around the German | | | | other approaches maybe by other investors |
| corporate law but it did not do it simply because it | | | | which could break up the company." |
| wants to gain control of Volkswagen. Believe it or | | | | Analysts are also expecting for Porsche to |
| not the German sports car maker just wants to | | | | gradually increase its stake in Volkswagen over |
| protect Europe's largest automaker from any | | | | the next few years in line with the goals of |
| untoward takeover by hostile foreign investors. | | | | Porsche's main shareholder and chairman, |
| And with the 30.9 percent owned stake of | | | | Ferdinand Piech. |