VW and Porsche – Together At Last
The Volkswagen & Porsche merger has finally gone through – is it a match made in automotive heaven? Or PR Hell? It’s been well over a year since the first hints of a Porsche VW merger have been whispered in the halls of German offices. Now, a 49.9% buy out of by Volkswagen AG of Porsche AG has been stamped – with the action taking place by 2011.
The Porsche and Piech families, which still control Porsche, set their signatures to a merger contract Friday, November 20, 2009. The VW board is said to also be signing off on a series of contracts, thousands of pages long, detailing a multi-stage process for the merger. VW said in a press release it wants the process to go as smoothly as possible and will propose a resolution to issue new preferred shares at its Extraordinary General Meeting on December 3, 2009. The new shares will allow VW to maintain its “medium term financial flexibility,” the company said.
via WCF
Leave a Reply