Volkswagen and Porsche - 3950 Words

Volkswagen and Porsche - Corporate Finance Case study: Mergers Acquisitions of listed companies by Joachim Hà ¤cker What is the macro view of this case study? Small fish tries to eat big fish (financial figures are end of 2005 and rounded): VW: Market cap: â‚ ¬16 bn Book value: â‚ ¬24 bn Cash and cash equivalent: â‚ ¬8 bn (+â‚ ¬4 bn marketable securities) Porsche: Market cap: â‚ ¬11 bn Book value: â‚ ¬3.4 bn Cash and cash equivalent: â‚ ¬3.6 bn VW Porsche case study – by Joachim Hà ¤cker Seite 1 What is the macro view of the case study? What is the agenda of this presentation? What is the agenda of this presentation? 1. Basic understanding: Basic understanding: How did the small fish try to eat the big fish - the takeover†¦show more content†¦VW Porsche case study – by Joachim Hà ¤cker Seite 12 Phase 1: Porsche might acquire VW: What are the threats and caveats SWOT analysis, Porsche takes over VW VW Porsche case study – by Joachim Hà ¤cker Seite 13 Phase 2: Edging towards the 30% mark (November 2006) Co Coinciding with the announcement of its 18.5% minority share (September 2005), Porsche (Sep announced that the scope of its engagement with VW would not, in any case, come to require issuance of a mandatory offer to the other shareholders: Fifteen months, that very thing happened! To accomplish this, Porsche did not buy VW shares directly: Instead, it (again) acted through options. This way, Porsche effectively â€Å"sneaked† its way to the 30% mark within one year. The initial 8.5% share was increased to 21% plus, and in November 2006, the company exercised VW common stock options at around 4%, with holdings totaling more than 25%. Two days later Porsche’s share increased to 27.4%. VW Porsche case study – by Joachim Hà ¤cker Seite 14 Phase 3: Crossing the 30% hurdle According to the German Stock Corporation Act, when Porsche crossed the 30%-threshold, to the German Stock Corporation Act when Porsche crossed the 30% Porsche was bound by contract to submit a bid to the other shareholders for the remaining ordinary and preference shares. PorscheShow MoreRelatedPorsche : The Invention Of The Volkswagen Beetle Essay1787 Words   |  8 PagesPorsche was co-founded in 1931 by Ferdinand Porsche, with his son and son-in-law, Anton Pià «ch, father of VW Chairman Ferdinand Pià «ch. The founder of the company is Dr. Ferdinand Porsche. He was born in Bohemia and went to school to be an engineer. 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