Volkswagen’s management and supervisory boards have rejected Porsche’s mandatory takeover offer.
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This is no surprise as the offer price is below the current trading price of shares on the stock market. It has been clear from previous statements that Porsche does not intend to take over Volkswagen at this point.
The sport car maker did have to make a mandatory takeover offer when its shareholdings exceeded 30%. By making the takeover offer now, Porsche is hoping that it will not have to make another takeover offer if it increases its stake further over time.
In a statement the company said that both corporate bodies have independently of each other reviewed the mandatory offer and “convinced themselves that the fundamental value of Volkswagen shares exceeds the offer price for the Volkswagen ordinary and preference shares. With regard to this valuation and the fact that the stock exchange prices for Volkswagen shares are currently higher than the offer prices, the board of management cannot recommend the acceptance of the mandatory offer.”
During the decision making of the supervisory board, members Ferdinand Piëch, Wendelin Wiedeking and Holger Härter abstained from voting.
By making reference to the statutory minimum price Dr. Ing. h.c. F. Porsche Aktiengesellschaft offers to pay Volkswagen shareholders EUR 100.92 per ordinary share and EUR 65.54 per preference share. The acceptance period of the mandatory offer commenced on 30 April 2007 and will expire on 29 May 2007.
