Luxury German carmaker Porsche says it is postponing moves to boost its stake in Volkswagen amidst signs the auto industry is facing tough times. But the delay doesn't mean Porsche's plans have been put on hold. At a news conference on Wednesday, Nov. 26, Porsche boss Wendelin Wiedeking said that the company would not reach its goal of acquiring a majority stake in VW this year, but that a future takeover was still on the cards. "We're sticking to our plan of acquiring 50 percent [of VW shares] and trying to get 75 percent," Wiedeking said. "But with prices so high, it doesn't make sense since inflated prices would necessarily mean write-offs for us, if we went purchasing. And we're definitely not doing that." In late October, rumors about Porsche's takeover bid caused VW shares to rocket to more than 1,000 euros ($1,292). VW stock prices have since settled to a more reasonable level of around 200 euros, but the securities remain expensive and, many analysts believe, overvalued. In addition, even Porsche is feeling the effects of the global financial crisis and Germany's economic recession.
At a news conference on Wednesday, Nov. 26, Porsche boss Wendelin Wiedeking said that the company would not reach its goal of acquiring a majority stake in VW this year, but that a future takeover was still on the cards.
"We're sticking to our plan of acquiring 50 percent [of VW shares] and trying to get 75 percent," Wiedeking said. "But with prices so high, it doesn't make sense since inflated prices would necessarily mean write-offs for us, if we went purchasing. And we're definitely not doing that."
In late October, rumors about Porsche's takeover bid caused VW shares to rocket to more than 1,000 euros ($1,292). VW stock prices have since settled to a more reasonable level of around 200 euros, but the securities remain expensive and, many analysts believe, overvalued.
In addition, even Porsche is feeling the effects of the global financial crisis and Germany's economic recession.
