Vw-porsche Merger | TheDetroitBureau.com
Detroit Bureau on Twitter

Posts Tagged ‘vw-porsche merger’

VW, Porsche Will Complete Merger After All

On-again/off-again tie-up to take effect in August.

by on Jul.05, 2012

Vanquished and victor - Porsche Chairman Ferdinand Porsche meets with VW Chairman Ferdinand Piech.

The on-again/off-again tie-up of Porsche and Volkswagen finally is set to be completed after a series of potentially costly snags that threatened to scuttle the deal.

The marriage – which follows an abortive David-and-Goliath effort by the smaller maker that triggered an assortment of lawsuits and a feud within the extended Porsche family – is “expected…to take effect as of August 1, 2012,” Volkswagen says.

Despite earlier fears that the tie-up could leave them vulnerable to billions of dollars in legal costs due to those lawsuits, the makers now contend the merger will generate a “clearly positive impact on consolidated profit(s).”

http://www.thedetroitbureau.com/about/subscribe

Your Winning News Source!

“We will concentrate all our strength on the operative business and the solid, profitable growth of the company,” says Volkswagen CEO Martin Winterkorn, adding that the newly combined firm should achieve “long-term synergies of about €700 million per year.”

(more…)

Porsche Facing More Legal Trouble

Further challenges to VW/Porsche merger.

by on Jan.03, 2012

The takeover attempt crafted by former Porsche CEO Wendelin Wiedeking now haunts the German maker.

A group of investment funds has filed a new lawsuit against Porsche Automobile Holding SE, seeking to recover approximately, $3.2 billion in losses suffered during Porsche’s failed fort to takeover Volkswagen AG in 2008.

The complaint, filed in district court in Stuttgart, alleges Porsche gained control over the price of VW common stock as it secretly built enormous derivative positions covering almost all of VW’s freely traded shares.

In the next step in the scheme, Porsche triggered a massive short squeeze, and finally released billions of Euros worth of shares for its own profit.

Subscribe Now - It's Free!

The web site Investopia describes a short squeeze this way: “If a stock starts to rise rapidly, the trend may continue to escalate because the short sellers will likely want out. For example, say a stock rises 15% in one day, those with short positions may be forced to liquidate and cover their position by purchasing the stock. If enough short sellers buy back the stock, the price is pushed even higher.”

(more…)

VW – Porsche Merger Delayed and Possibly Dead

Liabilities too high, warns Volkswagen.

by on Sep.09, 2011

Former Porsche Chief Wendelin Wiedeking's attempted acquisition of VW has led to major legal problems.

There are a growing number of skeptics wondering whether the formal merger of Volkswagen and Porsche will ever be completed or whether they might leave each other at the altar.

The tie-up was triggered by Porsche’s abortive attempt, in 2009, to buy out its German rival.  Struggling under massive debt and unable to complete the David-v-Goliath takeover, the smaller maker said it would become the latest brand in VW’s growing portfolio.

A Good Investment - And its Free!

But the consolidation has proven harder than anticipated to complete, even though a former VW executive is now running day-to-day operations at the Stuttgart sports car company.  According to German reports, VW will either have to exercise an option to buy out the 50.1% of Porsche it doesn’t already own or the two will need to reshape their current agreement.

A statement from VW insists that, “All parties remain committed to the goal of creating an integrated automotive group…and are convinced that this will take place,” but the kicker suggests there’s less confidence than this suggests,  The statement also cautions that VW will now, “analyze whether other potential courses of action exist.”

(more…)

VW/Porsche Merger at Risk

German prosecutors expand investigation of sports car maker.

by on Feb.24, 2011

Former Porsche CEO Wendelin Wiedeking is one of several executives under prosectors' scrutiny.

The planned merger of Porsche with the bigger German automaker Volkswagen AG is likely to be delayed – and may be called off entirely – as the result of an intensifying investigation of actions taken by current and former Porsche executives.

German prosecutors are looking into possible market manipulation, breach of trust and credit fraud stemming from the abortive effort by Porsche to take over its bigger rival.  Among those under the microscope are former Porsche CEO Wendelin Wiedeking, the executive who triggered the attempted acquisition before being forced out when his company had to concede defeat.

Free Subscription!

As part of a settlement, the debt-laden Porsche agreed to allow itself to instead be taken over by Volkswagen.  But that plan, Porsche officials today acknowledged, is now in jeopardy.

For their part, prosecutors in Stuttgart, home to Porsche, said three executives are facing accusations they provided “false or incomplete information” to banks involved in the planned takeover’s financing.

(more…)

Wolfgang Says Porsche Will Survive VW Takeover

Family heir cautions merger will take time to make work.

by on Sep.14, 2009

Victor and vanquished.  Ferdinand Porsche, (left) Chairman of the company bearing his family name, meets with Ferdinand Piech, Chairman of Volkswagen.  The larger maker beat back a takeover bid by Porsche and will now "merge" with the sports car maker - on its terms - in 2011.

Victor and vanquished: Wolfgang Porsche, (left) Chairman of the company bearing his family name, meets with Ferdinand Piech, Chairman of Volkswagen, which is taking Porsche over.

The shotgun marriage of sports car manufacturer Porsche and the German automotive giant, Volkswagen, will be a “good thing, but not easy” to pull off, said Dr. Wolfgang Porsche, the chairman of the smaller company’s supervisory board, and grandson of the company’s founder, Ferdinand Porsche.

The 65-year-old executive put in a surprise appearance – along with Porsche’s entire board of directors, during a Monday evening preview of some of the products the various Volkswagen brands plan to launch during the 2009 Frankfurt Motor Show.  The VW Group currently operates nine separate marques, and with the planned takeover of Porsche, that would grow to ten.

You're Source for Global Automotive News!

No Leveraged Financing Needed!

Porsche’s forced decision to put itself under the wing of the bigger manufacturer wrapped up one of the nastier – and odder – battles to shake the global automotive industry in recent years. In a wreckless “David versus Goliath” challenge, former Porsche CEO Wendelin Wiedeking began buying up shares of VW, hoping to put his company in control.  But Wiedeking didn’t count on Volkswagen’s Chairman, Ferdinand Piech, who happens to be Wolfgang Porsche’s cousin.

In the end, Piech blocked the bid, leaving Porsche with a massive debt for the Volkswagen shares it acquired.  Left with little alternative, Wiedeking resigned, and the sports car maker agreed to be the one taken over – though the deal is officially being described as a “merger.”

“I think it’s (going to be) a good thing, but not easy…to do,” said Wolfgang Porsche.  During an exclusive interview with TheDetroitBureau.com, he emphasized that, “You have to do all the steps, a lot of meetings, a lot of financial things, and for that you will need time.”

(more…)

All in the Family: Porsche Rejects VW Ultimatum

Family heir derides "blackmail," ignores Monday deadline.

by on Jun.29, 2009

Stick it Ferdi...Wolfgang Porsche decries a merger bid he decries as "blackmail," from cousin and VW Chairman Ferdinand Piech.

Stick it Ferdi! Wolfgang Porsche decries a merger bid he decries as "blackmail," from cousin and VW Chairman Ferdinand Piech.

The tug-of-war between German auto giant, Volkswagen, and the acclaimed sports carmaker, Porsche, continues to heat up, as an heir to the Porsche fortune ignores a merger deadline and accuses his rivals of “blackmail.”

In a battle that has taken some serpentine twists, in recent weeks, the larger automaker first rejected a merger bid that would have put Porsche in the driver’s seat, then laid out an ultimatum of its own, VW demanding a 49% stake in the smaller company, and giving Porsche only until today to respond.

Company officials are confirming that the Stuttgart-based sports car manufacturer today rejected the counter-offer, leaving a variety of possible alternatives as the two makers – both started by the Porsche family – move forward in what is, in many ways, an internecine rivalry.

“Ultimatums don’t belong in the 21st Century,” Wolfgang Porsche, chairman of the company best known for its sports car operations, told The Financial Times, over the weekend, adding that, “We won’t be blackmailed.”VW Chairman and Porsche heir Ferdinand Piech rejected a merger initiative and has countered with one of his own.

Delete this copy after inserting to retain outline box as in photos

The Stuttgart manufacturer set the battle in motion, last year, when it began accumulating shares of its cross-country rival.  A month ago, it appeared that Porsche might have gained the upper hand, and would press a merger that would put it in control.  But David didn’t count on Goliath’s ammunition and allies, notably German laws designed to protect VW from a hostile takeover.  After initially agreeing to sit down and discuss a deal, Volkswagen officials decided to back out.

That was bad news for Porsche, which has run up nearly $13 billion in debt since it began what some see as Quixote-esque bid.  Complicating matters, the global economic meltdown has hit hard sales of such iconic products as the 911 sports car and the Cayenne SUV.

(more…)

VW Warns It “Will Not Be Pushed” By Porsche

Big maker delays merger talks, could bolt entirely.

by on May.18, 2009

Volkswagen "will not be pushed" into a hasty marriage with Porsche, but behind the scenes, the dispute may reflect a familial squabble with Ferdinand Piech, a Porsche heir and senior VW board member, at its center.

Volkswagen "will not be pushed" into a marriage with Porsche. Behind the scenes, the dispute may reflect a familial squabble with Ferdinand Piech, a Porsche heir and senior VW board member.

Saying he “will not be pushed” into hastily hammering out a merger with the smaller Porsche, Volkswagen CEO Martin Winterkorn has postponed a meeting between the two companies scheduled for today.

Porsche is downplaying the delay, insisting that other meetings with VW are still going ahead, “in a normal manner,” according to a statement on its website.  But a spokesman for VW, in Europe, said that there are no further talks planned, for the moment.

Citing the need for “full transparency,” Winterkorn stressed that he does not want to “risk Volkswagen’s financial stability and sovereignty,” with a hastily-arranged corporate marriage.  In a letter to the automaker’s employees, first obtained by the Associated Press, Winterkorn said that, “For any association between Volkswagen and Porsche, we have to systematically analyze the position of Porsche in order to get a clear picture of the real situation.” (more…)

VW and Porsche Agree to Merge

The latest sign of a global industry consolidation.

by on May.07, 2009

The ties between Porsche and Volkswagen date back to the latter's founding, the Beetle developed by Ferdinand Porsche. More recently, they've worked together on the VW Touareg and Porsche's Cayenne, the GTS version shown here.

The ties between Porsche and Volkswagen date back to the latter's founding, the Beetle developed by Ferdinand Porsche. More recently, they've worked together on the VW Touareg and Porsche's Cayenne, the GTS version shown here.

In the latest sign of a rapidly accelerating global automotive consolidation, Volkswagen and Porsche have agreed to merger.

What’s unusual about the deal is that here the Goliath, Europe’s largest automaker, is effectively being taken over by the industry’s David, the small but hugely profitable luxury manufacturer.

That something would happen between the two German manufacturers has been anticipated for months, as Porsche has steadily expanded its stake in the larger automaker, buying up 51 percent of Volkswagen stock.

But VW hasn’t been an entirely passive target.  Its regional government, Lower Saxony, has long held a controlling 20 percent “golden” share in the company and had originally been expected to block a full takeover in order to protect both its investment and the huge job base at Volkswagen’s headquarters factory town.  Wolfsburg sits just miles from where the dividing line between West and East Germany used to run.

(more…)