agent Entrepreneur logo
MenuMENU
SearchSEARCH

Porsche Sells $7.1 Billion In Rights Offering To Prepare Way For VW Merger

April 15, 2011
3 min to read


Porsche SE raised 4.9 billion euros ($7.1 billion) in a rights offering, boosting the sports-car maker’s chances of completing a merger with Volkswagen AG.


A total of 99.7 percent of the available preferred shares were bought in the rights offering, with the remainder sold on the open market, the Stuttgart, Germany-based company said today in an e-mailed statement. The Porsche and Piech families, who control the common stock, also participated, reported Bloomberg.

Ad Loading...


Porsche will use the proceeds to cut debt to 1.5 billion euros, a prerequisite for the merger with VW. The sports-car maker and Volkswagen agreed to combine in 2009 after Porsche racked up more than 10 billion euros of debt in an unsuccessful attempt to gain control of VW. The company’s debt rose to 6.34 billion euros by Dec. 31 from 6.05 billion euros on July 31.


“This is a very vital step on the way toward a merger with VW,” Juergen Pieper, a Bankhaus Metzler analyst in Frankfurt who recommends buying Porsche shares. “Porsche’s debt has been a most pressing issue for VW; completion of the stock sale was absolutely indispensable to remove that stumbling block.”


Porsche preferred shares gained as much as 91 cents, or 2 percent, to 45.47 euros, and were up 0.3 percent to 44.69 euros as of 11:50 a.m. in Frankfurt trading. The stock has declined 12 percent this year, valuing the carmaker at 13.7 billion euros.


Porsche issued 131.25 million new shares, evenly split between preferred and common stock.


“With the successful capital increase, and as a result the significant decrease in Porsche’s debt, we’re taking an important step toward an integrated automobile company,’ Martin Winterkorn, who runs both carmakers, said in the statement. The shares were sold at 38 euros apiece, with one existing share carrying the right to subscribe to 0.75 new shares.

Ad Loading...


Europe’s largest carmaker’s merger with Porsche, originally scheduled for completion in the second half, will probably be delayed into next year because of German legal obstacles. An investigation into share-price manipulation allegations will likely push the deal’s completion into 2012, Porsche said Feb. 24. VW now owns 49.9 percent of Porsche’s carmaking operation.


The Porsche and Piech families were expected to spend 2.25 billion euros on the share sale, while Qatar Holding LLC, part of the country’s sovereign wealth fund which owns 10 percent of Porsche’s voting stock, planned to contribute 250 million euros, Chief Financial Officer Hans Dieter Poetsch said last month.


Short sellers of VW stock have sued Porsche in the U.S., claiming the carmaker secretly piled up VW shares and later caused the investors to lose more than $1 billion. At the same time, institutional investors in Germany are seeking 2.5 billion euros in damages over the matter. Porsche has repeatedly denied all the allegations.

More Industry

Two white men's shaking hands
Industry•October 15, 2026

Penske Auto Group Deal a Record

The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.

Read More →
Rows of cars parked in exterior lot
Industry•by Hannah Mitchell•October 8, 2026

War Toll a Damper on Used Auto Prices

Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.

Read More →
Mechanic cleaning interior of engine
Industry•by Lauren Lawrence•October 8, 2026

Bridge the Maintenance Gap

With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.

Read More →
Ad Loading...
Ford F-150 truck rounding a curve
Industry•by Hannah Mitchell•October 1, 2026

California Store Has New Owner

The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.

Read More →
crane lowering a pipeline into the ground
Industry•by Lauren Lawrence•October 1, 2026

BMW Plant Pursues Cleaner Energy

BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.

Read More →
Two dodge cars outside of dealership.
Industry•by Lauren Lawrence•September 17, 2026

Auto Affordability Inches Up

The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.

Read More →
Ad Loading...
Five men smiling for photo in front of Honda car dealership.
Industry•by Lauren Lawrence•September 10, 2026

Ohio Auto Group Under New Ownership

After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.

Read More →
Blue and white RV parked on beach facing the ocean.
Industry•by Lauren Lawrence•September 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industry•by Hannah Mitchell•September 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Ad Loading...
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industry•by Lauren Lawrence•August 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...