Porsche controls VW, to buy Audi

[cosworth151]

From AutoWeek's Daily Drive e-newsletter:

Porsche on Tuesday said it holds 35.14 percent of the voting rights in Volkswagen group. Porsche said VW has now become a subsidiary of Porsche Automobil Holding under German law.

Porsche also said it is obliged to make a compulsory offer for Audi because it has raised its stake in VW, which owns Audi, from 31 percent, but Porsche said it has no interest in separating Audi from VW group.

Porsche CEO Wendelin Wiedeking said the sports car maker intends to raise its stake in VW to more than 50 percent. "Today's step is a further milestone on the way," Wiedeking said in a statement.

Porsche will offer the legal minimum of about 487 euros per share, or about $694 at current exchange rates, for the approximately 370,000 Audi shares (0.86 percent of the company) that are publicly available. Based on last Monday's closing price, the shares are valued at approximately 170 million euros, or $242.3 million. VW has said it will not accept Porsche's offer for its 99.14 stake in Audi. Porsche only will buy the free-floating shares.

Wiedeking said: "We see Audi as an integral part of VW group and have no interest in taking the company out of the group."

Now Ferdinand Piech’s future as Chairman of the Supervisory Board at VW may now be under threat - from his cousin, Porsche Chairman Wolfgang Porsche. This is stating to look like an automotive version of the old TV show Dallas.

[John S]

This may all be to the good if Porsche take a fresh look at F1 with the Audi brand. VW have resisted the temptation to join Merc & BMW in the top league but Porsche's racing heritage may change things.

[cosworth151]

I wonder what this will do to endurance racing, with Audi and Porsche both heavily involved. Over here, in the ALMS, the Audi vs Porsche battle is one of the main attractions.