Volkswagen Porsche relationship
Jul 18th 2007spoilerkingBlogroll
In the relationship between Volkswagen and Porsche the main question is will Porsche benefit from the possible increase in its shareholding in Volkswagen? Porsche, maker of excellent valuable cars like Boxter, 911 and Cayenne along with their reliable and durable car parts is talking about a possible increase in stake in, the all so well known Volkswagen Company. This step will be taken by the Company to prevent takeover from abroad.
The CEO of the Company states that he has no plans to takeover Volkswagen Company but it seems that by increasing the stake in the said company, Porsche, will try and take the controlling seat of the Company before the expiry of the clause that limits the voting rights of shareholders by 20%.
Rising from the above controversy, the analysts are of the view that great uncertainty surrounds that the whole issue. Porsche will have to dish out finances from the banking sources, which means that the Company will have to reply on bank loans to pay for more stake in Volkswagen. The current value of the Volkswagen brand stands at US$38.38 billion approximately, that’s a whole lot of money.
The point is how far will they be able to pull the deal through? How will it effect the reputation of both the companies and would it help in building better cars, car parts and accessories.
No Comments »