Automotive – Volkswagen rose more than 4 billion euros for Porsche
The first European car manufacturer Volkswagen announced Tuesday a capital increase with a volume of over 4 billion euros to partially fund the acquisition of Porsche, which has caused further heavy falls for action.
The group will offer its shareholders 65 million new preference shares without voting rights, for an amount that could reach more than 4 billion euros based on the share price on Tuesday.
The preference share of Volkswagen fell after the announcement.At 14:10 GMT, it lost 7.50% to 67.55 euros, a red lantern up Dax (+0.10%).
This capital increase was certainly expected, but the method disclosed Tuesday by the group are not transparent, "the markets want to know the details," said Heino Ruland, analyst at Research Ruland told Dow Jones Newswires.
The group has yet to set conditions Friday and the price of this capital increase.Pre placement of shares to begin Wednesday and the subscription period extended from March 31 to April 13.
Cash collected from investors in particular are intended to improve the financial structure of Volkswagen against a backdrop of creating an integrated automotive group with Porsche, "said the company Wolfsburg (North) in a statement.
Volkswagen holds 49.9% of Porsche AG, bringing together the activities of automotive manufacturer of cars that he fully intends to acquire by 2011. Porsche will then be added to its nine existing brands.VW had paid 3.9 billion euros for its share.
Shareholders of Volkswagen – the Porsche Holding SE (50% of voting rights), the German state of Lower Saxony (east) (20%) and the emirate of Qatar (17%) – have authorized 2009 to carry out capital increases for a total of up to 8.5 billion euros.
The emirate of Qatar has "reserved the right" to participate in the operation, he considers "an important step in the formation of an integrated group," he said in a separate statement.He also "confirmed its position as a long-term investor in Volkswagen.
But the group has comfortable liquidity (10.6 billion at end-December 2009), and its CFO had said in early March that he would stick to a single capital increase of 4 billion euros.
Cash collected could also finance other future projects "medium term" was "he said.
Volkswagen has already bought in late 2009, 19.9% of Japanese Suzuki and has expressed its intention to establish a large pole with his truck brand Scania and German MAN, which is the main shareholder.
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