Volkswagen shares soar after automaker announces Porsche takeover
2011 Porsche Boxster is seen in this image courtesy Porche Canada.
Published Thursday, July 5, 2012 6:49AM EDT
BERLIN -- Shares in Volkswagen AG have soared higher after Europe's biggest automaker announced a deal to complete the takeover of sports car manufacturer Porsche by the end of the month.
Volkswagen's shares were up 5.8 per cent at 135.35 euros (US$170.14) in morning trading in Frankfurt on Thursday.
Volkswagen announced Wednesday night that Porsche will become a fully integrated brand of the Wolfsburg-based company as of Aug. 1. The Volkswagen group already includes brands such as Audi, Volkswagen, Seat, Bugatti and Bentley.
Volkswagen is to buy the 50.1 per cent in Porsche's capital that it doesn't already hold from holding company Porsche SE for 4.46 billion euros plus one Volkswagen share.
Porsche failed in an attempt to take over VW in 2009. Volkswagen emerged on top but its takeover plans had been stalled.