In order to comp
lete a takeover of Porsche and explorer other possible acquisitions, Volkswagen announced on Friday a plan to raise up to $14.9 billion in new capital. VW plans to raise the money through the issuing of new preferred shares.According to Reuters, VW will ask shareholders in December to approve a plan to issue 135 million new shares. Per VW’s plans, the share offering would be completed by 2014, with the bulk of the new shares hitting the market by mid-2010.
VW’s plan only calls for the offering of preferred shares, ensuring voting stakes remain intact.
The majority of the fund would go towards integrating Porsche into the VW family, but the German automaker could also use the cash to seek other acquisitions. VW currently owns a 29.9 percent stake in German truckmaker MAN AG, but is said to be mulling a full takeover. Per German law, VW would have to make a takeover bid if its ownership topped 30 percent.
VW – Europe’s largest automaker – currently holds an 11.7 percent share of the global market.
lete a takeover of Porsche and explorer other possible acquisitions, Volkswagen announced on Friday a plan to raise up to $14.9 billion in new capital. VW plans to raise the money through the issuing of new preferred shares.According to Reuters, VW will ask shareholders in December to approve a plan to issue 135 million new shares. Per VW’s plans, the share offering would be completed by 2014, with the bulk of the new shares hitting the market by mid-2010.VW’s plan only calls for the offering of preferred shares, ensuring voting stakes remain intact.
The majority of the fund would go towards integrating Porsche into the VW family, but the German automaker could also use the cash to seek other acquisitions. VW currently owns a 29.9 percent stake in German truckmaker MAN AG, but is said to be mulling a full takeover. Per German law, VW would have to make a takeover bid if its ownership topped 30 percent.
VW – Europe’s largest automaker – currently holds an 11.7 percent share of the global market.