Blog: Volkswagen share price rollercoaster
Dave Leggett | 30 October 2008
The Volkswagen share price has been a little bit subject to some peculiar influences for some time now. There's the barely visible and nepotistic hand of Porsche gradually taking more control in the background alongside the unclear status of the Lower Saxony stake. And there's an underlying row over whether or not the company needs radical surgery to be competitive.
As Porsche has increased its VW shareholding over time, the VW share price has appreciated. But a whole load of speculators recently placed bets that the price would go down and got seriously burned when it actually went up, Porsche deciding that it wants to take a much higher stake in VW, or at least get to a position where it can do that - contrary to earlier statements.
Is Porsche playing the market? The firm is certainly in a position to, with its actions/statements with regard to VW being very, very highly market sensitive. But I can't imagine there will be very much sympathy in Germany for the people who are suffering in this instance.
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