VW to Pay $5.6B for Rest of Porsche in End to Saga

Volkswagen gained as much as 5.75 euros, or 4.5 percent, to 133.75 euros and was up 4 percent as of 9:13 a.m. in Frankfurt trading. The shares have climbed 15 percent this year, valuing the carmaker at 59 billion euros. The Porsche SE (PAH3) holding company’s stock rose as much as 5.8 percent and was up 3.4 percent to 43.42 euros, giving it a market value of 13.3 billion euros.
Avoiding Taxes

VW said it expects Porsche’s automaking business to be fully consolidated in its accounts from Aug. 1. Porsche’s earnings contribution for this year will be mainly offset by the purchase price, VW said. The two companies scrapped the plan for a full merger last year with the Porsche holding company, which is controlled by the Piech-Porsche family and still owns 50.7 percent of VW’s common stock, because of lawsuits against Porsche in the U.S. and Germany over the failed VW takeover.

Ferdinand Piech, VW’s chairman, crossed his cousin Wolfgang Porsche to thwart the plan, which ultimately fell apart after Porsche’s debt rose in the midst of the financial crisis.
Solidifying Control

VW also controls truck makers MAN SE and Scania AB. (SCVB)