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Regulators approve Porsche's bid for Volkswagen

Regulators approve Porsche's bid for Volkswagen

Germany's financial regulators have approved automaker Porsche AG's takeover offer for Volkswagen AG, which it was forced to make after acquiring more than 30 percent in the company, Porsche said Monday.
According to a document on Porsche's Web site, it has improved its offer for preferred shares to euro65.54 (US$89.42) each from euro65.45 (US$89.29). It is still offering euro100.92 (US$137.69) per ordinary share.
Stuttgart-based Porsche triggered the mandatory takeover offer by raising its stake in Volkswagen higher than 30 percent _ a move aimed at shielding the automaker from the possibility of a foreign takeover attempt.
Porsche has said it doesn't plan to acquire Wolfsburg-based Volkswagen outright.
The offer gives the company the chance to purchase Volkswagen shares without making another takeover bid.
A German law that limits Volkswagen shareholder voting rights to a maximum of 20 percent, no matter how many shares are held, is expected to be ruled unlawful by the European Union. That ruling would have left VW exposed to takeover attempts.
But with Porsche now holding 31 percent of the company and the German state of Lower Saxony a near-20 percent stake, the car maker is now shielded.
Volkswagen shares rose 0.7 percent in Frankfurt trading to euro112.24 (US$153.13), while Porsche shares gained 1.6 percent to euro1,243.82 (US$1,696.94)


Updated : 2021-06-20 19:10 GMT+08:00