VW Approves Porsche Contracts of Implementation

The soon-to-be forged Volkswagen-Porsche conglomerate took today yet another step towards a joint future, with the Volkswagen Aktiengesellschaft Supervisory Board approving the contracts of implementation which establish the details of the already agreed upon alliance.

"The Supervisory Board of Porsche Automobil Holding SE will also consult on the contracts of implementation when it meets on Friday. These contracts specify the binding provisions governing the organizational, structural and legal details of the union between the two companies and the individual transaction steps," Volkswagen says in a release.

The next step to be taken for the formation of the new group, set for 2011, is the acquisition of the 49.9 percent in Porsche AG by the end of this year. It all may happen on December 3, when an Extraordinary Meeting of VW is planned.

The meeting has on its agenda the proposal of issuing new preferred shares, a proposal which will allow Volkswagen to maintain its financial health. The new shares will also help VW by bringing a marked increase in the number of preferred shares in circulation. Loosely translated, more money...

"The creation of an integrated automotive group with ten strong brands follows a compelling industrial logic. It represents a unique opportunity for Volkswagen and is in the best interests of all shareholders. Volkswagen will further expand its position as the leading global multi-brand group with the inclusion of Porsche AG and the automobile trading business of Porsche Holding Salzburg," Volkswagen concluded.