After increasing its share to 42.6 percent, Porsche Automobil Holding has finally raised its stake in Volkswagen AG to more than 50 percent leading to a mandatory takeover of the largest German automaker. According to Reuters, the additional 8.15 percent stake was worth about 6.1 billion euros ($8.49 billion USD) on the stock market on Monday.
Porsche originally planned to increase its stake over 50 percent by the end of 2008, but due to a massive short squeeze in late Oct., Volkswagen share prices rocketed making it the world’s most valuable company for about two days.
Porsche’s CFO Holger Haerter then said that Porsche will most likely increase its shares next year since it wouldn’t make sense for it to buy Volkswagen AG at such a ridiculously high-price. Porsche is looking to increase its stake in Volkswagen AG to 75 percent later this year.