Porsche eyes a slice of VW
Their paths have been intertwined since day one, but Porsche and Volkswagen are now on the verge of forging an even closer link.In a seemingly surprising turn of events, Porsche has announced its intention to splash out $4.8 billion to acquire a 20 per cent stake in Volkswagen. The announcement came in the wake of rumours that overseas investors were eyeing a slice of the world's fourth-biggest car maker.
Porsche boss Wendelin Wiedeking says the aim is to "secure our business relations with VW and safeguard an essential part of our future planning over the long term."
Porsche and Volkswagen currently collaborate on the Cayenne and Touareg SUVs, which share the same underpinnings. The two car makers also recently formed an alliance to develop hybrid engines.
Germany's Der Spiegel said Porsche wants to ensure it's not left high and dry should a financial investor take control of VW and dismantle the company.
The German state of Lower Saxony is currently the largest VW shareholder with 18.2 per cent of its voting rights. Volkswagen itself holds another 13.0 per cent voting stake in treasury shares.
Investment company Brandes Investment Partners had 10.65 percent of the voting rights, according to VW's annual report, while Capital Group Companies had 5.12 per cent.
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