Porsche Takes de Facto Control of Volkswagen

German luxury car maker Porsche on Tuesday raised its stake in Volkswagen to more than 35 percent, a move that it gives de facto control over Europe's biggest automaker.

Previously, Porsche held a stake of a little more than 30 percent and has said it plans to raise that to over 50 percent.

On Tuesday, Porsche acquired an additional 14.4 million ordinary Volkswagen shares, or 4.89 percent, raising its share of the voting rights to 35.14 percent, the Stuttgart-based carmaker said in a statement.

Porsche said that as a result of the share purchases, Volkswagen has become a subsidiary of Porsche Automobil Holding SE under German securities laws.

We're looking forward to continuing and deepening the trustful cooperation with the management of Volkswagen and hope for a swift resolution of the conflict between labor representatives of Porsche and Volkswagen, Porsche Chief Executive Officer Wendelin Wiedeking said in the statement.

Our goal continues to be to increase our stake in Volkswagen to more than 50 percent, Wiedeking added.

Source: Portnews