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Volkswagen’s takeover of Porsche is hardly news, but it was revealed today that the German automaker is buying a bigger piece of the sports car manufacturer than originally anticipated.
Previously, VW was set to purchase a 42-percent stake in Porsche, paving the way for a full-blown merger. Today, the company announced it would increase the stake to 49.9 percent. Accordingly, the cost of the transaction has increased from $4.9 billion to $5.8 billion. According to a release from Volkswagen, the revised purchase was triggered because “projects identified for a closer cooperation have been making swifter progress than initially anticipated.”
Although the initial purchase deal has changed, the timetable for the merger has not. Volkswagen still believes the integration of Porsche into its coffers will be completed by 2011.
Source: Volkswagen
I guess this would be a good example why smaller fishes shouldn’t try eating the bigger fishes…
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