Porsche taking out $46.67 Billion loan to take over Volkswagen
According to the banks involved, Porsche is trying to take out $46.67 billion to finance its bid to take over Volkswagen, the largest German auto maker. Just three days ago, Porsche announced that it is raising its stake above 30 percent. Porsche has previously denied any interest in taking over Volkswagen but made sure that it played a bigger role in its decision making.
The banks involved in the process include ABN AMRO, Barclays Capital, Merrill Lynch, UBS and Commerzbank, which say that Porsche’s loan will finance the remaining outstanding shares.
Porsche has previously hinted at positioning itself to stand up next to Toyota, which is on its way to take over GM as the largest auto maker in the World. Porsche’s CEO Wiedeking was reported saying in December during the company’s financial result conference:
“We opened the game. Other players are either striking out against us or joining us in our moves””and now everybody not acquainted with the tactics we had carefully considered in advance is feeling nervous. VW, with all its brands, is the only one with the potential to stand up to Toyota.”
So, Toyota, Ford and GM, watch out, because Porsche isn’t playing any more games.
Source: Reuters
