Porsche owns 74% of Volkswagen
ERJ staff report (ANE)
Frankfurt, Germany (Reuters) -- Porsche plans to gain control of more than 75 percent of Volkswagen in order to pass a domination and profit transfer agreement that would grant it full control of VW's cash flows, Porsche said on Sunday.
As of the end of last week, Porsche said in a statement it owned 42.6 percent of Volkswagen voting stock and held a further 31.5 percent in cash-settled options on VW ordinaries -- giving it indirect control of 74.1 percent.
"The goal is to raise this to 75 percent in 2009, so long as the economic conditions permit, and pave the way for a domination agreement," it said.
It continues to expect it will cross the 50 percent threshold for its direct stake in VW by the end of this year.
A domination agreement requires at least 75 percent control of a company's votes present at a shareholder meeting under German law.
From Automotive News Europe (A Crain publication)
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