Aug. 14 (Bloomberg) -- Volkswagen AG, Europe’s largest carmaker, will pay about 3.3 billion euros ($4.7 billion) for a 42 percent stake in Porsche SE’s automotive unit as it executes a gradual merger of the two manufacturers.Related posts:
Volkswagen will fully integrate the maker of the 911 sports car in 2011 as long as all merger requirements are met, the companies said yesterday in separate statements. Volkswagen plans to issue new preferred shares in the first half of next year to help pay for the purchase, which values Stuttgart, Germany-based Porsche’s car division at 12.4 billion euros.
Porsche CEO Wendelin Wiedeking and CFO Holger Haerter stepped down on July 23 and the company named Michael Macht, its personnel chief, to succeed Wiedeking as the head of the automotive business, called Porsche AG, which will remain based in Stuttgart. Macht will represent the Porsche brand at Volkswagen as the companies combine, Porsche said.
Porsches is now Volkswagen 11th brand
It is now official, after years of speculation, mismanagement, but yet huge profits thanks to the bubble economy, Porsche got hit hard after trying to swallow a target much bigger than itself. Obviously, the CEO and CFO resigned.