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Volkswagen shares rocket on Porsche plans

Volkswagen shares rocket on Porsche plans

Volkswagen shares soared 90 percent higher Monday, bolstered by Porsche's announcement of plans to lift its stake in the automaker to 75 percent by 2009.
Shares of Europe's biggest car maker rose as high as 414.75 euros ($514.29) before settling back to 400 euros ($496), up more than 188 euros ($229.40), or 90 percent on the day, in late afternoon Frankfurt trading.
Porsche Automobil Holding SE was already Volkswagen AG's biggest shareholder and said Sunday that it had lifted its stake to 42.6 percent and had secured options to buy more of the company.
"The goal remains, as long as the financial conditions are right, to increase (the stake) to 75 percent in 2009 and clear the way for a controlling stake," the Stuttgart-based company said.
As part of that goal, Porsche said it was sticking to plans to lift its VW stake above the 50 percent mark before the year's end.
Porsche has slowly been increasing its stake in VW, which enjoys a special status in Germany under a law that allows the state of Lower Saxony, where Volkswagen is based, a blocking minority right although it holds a stake of just over 20 percent.
Porsche and the European Union have sought to overturn that law, which effectively protects the automaker from being taken over.
Investors were not as pleased with Porsche, however, pushing its shares 12.5 percent lower on Monday to 40.30 euros ($49.97).
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On the Net:
http://www.volkswagen.com
http://www.porsche.com


Updated : 2020-12-05 03:02 GMT+08:00