March 26, 2007

Porsche to bid for Volkswagen

Wolfsburg, Germany – Porsche AG will increase its stake in Volkswagen from the current 27.3 per cent up to 31 per cent and thus make a mandatory offer for the company, according to a report by the Green Car Congress. Financing of the mandatory offer has been ensured via a credit facility arranged by several banks and investment firms.

Volkswagen currently builds the Porsche Cayenne, Volkswagen Touareg and Audi Q7 at the same plant, and the two companies have further joint projects, including a hybrid drivetrain and cooperation with regard to building the body shell of the new four-door Gran Turismo Panamera.

Porsche proposes implementing a holding structure to separate operational business activities, with the operational business of Porsche AG becoming a wholly-owned subsidiary of the larger holding company. In a statement, Porsche said, “The Managing Board of Porsche has, in this context, made it clear: Porsche will remain Porsche. The Managing Board of the sports car manufacturer regards the proposed increase of the stake in VW group as a logical step to enable it to meet the global challenges in the highly competitive automobile market even better. It is firmly convinced that the technical and strategic collaboration between Porsche and Volkswagen produces benefits for both partners.”

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