Porsche borrows 10 billion euros to buy stake in VW
At the recent Porsche general staff meeting, Porsche CEO Wiedeking expressed his views on the latest media frenzy around the Porsche – Volkswagen relationship. Implying that Porsche will not be taking over Volkswagen, he said Porsche will operate independently of Volkswagen”s decisions. But that doesn’t seem like the case here.
According to a banker involved in the Porsche/Volkswagen transaction, Porsche has borrowed $13.7 billion from 37 lenders to finance the purchase of its remaining Volkswagen shares.
Porsche officially submitted an offer to acquire shares of Volkswagen in April, offering Volkswagen shareholders an amount of €100.92 ($137.78) per common share and €65.54 ($89.47) per preferred share. Volkswagen then unanimously decided to rejected the takeover bid saying that the company”s management was convinced that “the value of Volkswagen shares is superior to the price offered.”
Let’s see if this is enough to make Volkswagen budge.
Source: The Detroit News
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