Photo: Volkswagen
Back in 2008, Porsche attempted a takeover of Volkswagen, but it failed because of insufficient funding, along with poor management decisions.
Volkswagen ended up buying Porsche after the entire deal, since the sports car manufacturer had accumulated debt in its endeavor to take control the VW Group. At the time, the move was not seen with good eyes by the general public, and stockholders were also dissatisfied with the decisions that were made.
Porsche had been buying Volkswagen AG shares since 2005, and the transactions continued until 2009. The said takeover that was attempted by Porsche is considered a “hostile takeover” by some specialists, because Porsche apparently wanted to do it without a direct agreement with Volkswagen.
Previous reports on the topic noted that Porsche had accumulated about 9 billion euros in debt after its attempt of taking over Volkswagen AG. Eventually, the Wolfsburg-based corporation proposed a merger to the German sports car brand, and they agreed to its terms and conditions. Thankfully, the Porsche brand is alive and kicking after this financial adventure, which could have ended in an unfortunate fashion.
The entire business was contested by U.S. hedge funds, which asked Porsche SE to pay them approximately 1.2 billion euros in alleged damage from the transaction, which the plaintiffs claimed was short-sold to bring down the cost of Volkswagen’s attempted takeover.
With the most recent court decision in Germany, made by the country’s highest civil court, Porsche and Volkswagen can rest assured that they will not face another lawsuit in their country from the former plaintiffs.
The executives at Porsche SE appear excited to hear about the recent legal success of the company, which has had its opinion confirmed in court for the seventh consecutive time.
All of the court disputes that have taken place were focused on the takeover deal that went sour, so Porsche still has something positive going for it, in spite of the fact that it will never have the chance to assimilate the Volkswagen Group.
Porsche had been buying Volkswagen AG shares since 2005, and the transactions continued until 2009. The said takeover that was attempted by Porsche is considered a “hostile takeover” by some specialists, because Porsche apparently wanted to do it without a direct agreement with Volkswagen.
Previous reports on the topic noted that Porsche had accumulated about 9 billion euros in debt after its attempt of taking over Volkswagen AG. Eventually, the Wolfsburg-based corporation proposed a merger to the German sports car brand, and they agreed to its terms and conditions. Thankfully, the Porsche brand is alive and kicking after this financial adventure, which could have ended in an unfortunate fashion.
The entire business was contested by U.S. hedge funds, which asked Porsche SE to pay them approximately 1.2 billion euros in alleged damage from the transaction, which the plaintiffs claimed was short-sold to bring down the cost of Volkswagen’s attempted takeover.
With the most recent court decision in Germany, made by the country’s highest civil court, Porsche and Volkswagen can rest assured that they will not face another lawsuit in their country from the former plaintiffs.
The executives at Porsche SE appear excited to hear about the recent legal success of the company, which has had its opinion confirmed in court for the seventh consecutive time.
All of the court disputes that have taken place were focused on the takeover deal that went sour, so Porsche still has something positive going for it, in spite of the fact that it will never have the chance to assimilate the Volkswagen Group.
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