Volkswagen rejects Porsche’s bid

Volkswagen management said Friday that the company has unanimously decided to rejected a takeover bid by luxury sports car maker Porsche. Volkswagen said in a statement that the company’s management was convinced that “the value of Volkswagen shares is superior to the price offered.”

Porsche officially submitted an offer to acquire shares of Volkswagen in April, which will give it total control of Germany”s largest auto maker. The offer came after Porsche increased its shares in Volkswagen to 30.9 percent, making it mandatory under German law for Porsche to launch a takeover for all outstanding shares.

Porsche offered the Volkswagen shareholders amounts to €100.92 ($137.78) per common share and €65.54 ($89.47) per preferred share, which represents the minimum price required by law. The price was well below Volkswagen current value of €111-€112.

Source: Yahoo News

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