Porsche Slightly Improves VW Bid

Porsche slightly improves VW bid Automotive News FRANKFURT (Reuters) -- Porsche launched its required takeover offer for Volkswagen at marginally improved terms today, still aiming for less than a majority stake in VW. Porsche, which is already the largest shareholder in VW, was required to bid for Europe's biggest carmaker after Porsche's voting stake exceeded 30 percent in March, but it has made clear it is not striving for majority control at this stage. Porsche is now offering 100.92 euros, or $137.36 at current exchange rates, for each Volkswagen ordinary share and 65.54 euros, or $89.21, per preference share, according to bid documents published on the Internet, valuing Europe's biggest carmaker at nearly $49.01 billion (36 billion euros). The price for the ordinary shares was as envisaged, while Porsche had originally planned to offer 65.45 euros for the preference shares. German regulators have approved the offer, which runs until May 29. Volkswagen declined to comment. Porsche has said that making a bid now means it would not have to make subsequent mandatory takeover offers should it raise its VW stake in future, thus giving it the flexibility to counter any move on VW by hedge funds or private equity houses. Porsche and the German state of Lower Saxony, which has around 20 percent of VW, together control more than half the votes in the carmaker. Porsche has said it wants to defend its close ties with Volkswagen -- which provides content for a third of the vehicles Porsche sells -- in case a German law that limits individuals' voting rights in VW is repealed this year, as expected.