Porsche Controls VW, to Make Offer for Audi

Washington DC September 16, 2008; The AIADA newsletter reported that sports-car maker Porsche said today it raised its voting stake in Volkswagen AG, gaining control of the company and triggering a mandatory offer for Volkswagen's premium brand, Audi AG. Click here for a photo of workers installing a VW logo in the temporary Volkswagen center in Berlin. The Wall Street Journal reports that Porsche raised its voting stake in Volkswagen by 4.89 percent to 35.14 percent and has gained control of Europe's largest car maker by sales. "It remains our target to raise our Volkswagen stake to more than 50 percent," Porsche Chief Executive Wendelin Wiedeking said in a statement. Porsche said for legal reasons it has to make a mandatory takeover offer for Audi, which will be at the minimum price of around $697 per share. "We see Audi as a crucial part of the Volkswagen Group and have no interest to spin off Audi," Porsche said. Audi's TT, R8, and Q7 models are direct rivals of Porsche's Boxster, 911, and Cayenne cars, which sparked fears at VW that Porsche could gain valuable insights at Audi that would give it a competitive advantage.