Shares skyrocket as Porsche takes over Volkswagen

[72targa]

http://news.yahoo.com/s/afp/20090106...eoverporschevw

[Bummler]

Porsche Automobil Holding SE said Monday it bought additional shares in Volkswagen AG, raising its stake to 50.76%.

In October, Porsche surprisingly announced that it had control of 31.5% of VW through cash-settled options in addition to the 42.6% of shares it held back then, leaving it just 0.9% short of the 75% level needed to book VW's revenue, assets and profits in its own books.

The purchase of additional shares triggers a mandatory bid for Swedish truck maker Scania AB. Volkswagen is Scania's majority shareholder, with around 69%. Porsche said that by crossing the 50% threshold on VW it now has to make a mandatory bid for Scania under Swedish law. Porsche added, however, that it has "no strategic interest" in acquiring Scania shares and only has to offer the minimum price permitted under takeover law.

[72targa]

I see a new Porsche transporter in the wings!

[J-P]

Apparently this is isn't good for everybody. Check the bold print about half way down.

(CNN) -- German billionaire Adolf Merckle, one of the richest men in the world, committed suicide Monday after his business empire got into trouble in the wake of the international financial crisis, Merckle's family said Tuesday in a statement.

Merckle, 74, was hit by a train in the southwestern town of Ulm, police said.

His family said the economic crisis had "broken" Merckle.

He was number 94 on the Forbes list of the world's richest people. He had fallen from number 44 on the Forbes 2007 rich list as his fortune declined from $12.8 billion to $9.2 billion in 2008.

Merckle's business empire included interests as diverse as cement-maker HeidelbergCement and generic drug-maker Ratiopharm. But he lost hundreds of millions of dollars, including company capital, betting against Volkswagen stock last year. The state government of Baden-Wuerttemberg rejected his petition for financial assistance, and he entered bailout talks with several German banks.

"The financial troubles of his companies, induced by the international financial crisis and the uncertainty and powerlessness to act independently which the financial problems brought about, broke the passionate family business man, and he took his own life," his family wrote in the news release.

An employee of Germany's railroad company found the body on the tracks at about 7 p.m. Monday and notified authorities. Merckle's family had already reported him missing earlier in the day after he walked out of the house and did not return. Authorities are currently conducting DNA tests to confirm his identity.

[curtisaa]

Amazing thing is that he knew Porsche was trying to hold the majority shares in VW. Unfortunately the court system there allowed Porsche to go forward with their purchases allowing them to have NOW the majority. He obviously didn't have the political clout it takes to try to pull off what he was attempting to do. Realistically, if he would have suceeded, it would have been HUGE !