Providers and Administrators in blue 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

Line graphic showing week-over-week wholesale auto price changes
Industryby StaffApril 22, 2026

Black Book: Weekly Market Update

Wholesale auto conversion rates dropped slightly as auction buyers proved picky last week, analysts observed.

Read More →
pavement with car and charger wrapped around it painted on
Industryby Lauren LawrenceApril 16, 2026

EV Battery Cycle Life at Risk

Fast charging of electric vehicles provides a solution for range anxiety, but it also poses a risk to battery cycle life due to increased temperatures, according to an EV supply chain data provider.

Read More →
Photo of exterior facade of Beardmore Chevrolet store
Industryby Hannah MitchellApril 14, 2026

Founding Family Sells Nebraska Dealerships

Expanding Midwest automotive group picks up three stores as part of the robust transaction activity early this year.

Read More →
Ad Loading...
Up-close photo of car battery
Industryby Hannah MitchellApril 13, 2026

Automaker Increases Parts Recycling

Stellantis is adding a third end-of-life vehicle dismantling facility to feed its growing reuse business sparked in large part by autos’ growing lifespans.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo from the rear of the XC60 SUV
IndustryApril 8, 2026

Volvo to Shift Some EV Production to U.S.

The automaker says its movement of some electric-vehicle work to the S.C. factory is part of a more tailored product focus. It also plans to add a new hybrid model to the plant’s itinerary.

Read More →
Ad Loading...
Bar graphic depicting week-over-week change across the various vehicle segments
Industryby StaffApril 7, 2026

Black Book: Weekly Market Update

Last week's wholesale automotive auction activity continued in a healthy mode, though buyers practiced selectivity.

Read More →
red car at a gas station being filled with gas. Efficiency Drives Demand. Providers and Administrators logo
Industryby Lauren LawrenceApril 7, 2026

Gas Prices Driving Consumer Interest

CarGurus’ first quarterly review of 2026 shows that affordability concerns are continuing to drive consumer purchases with a shift to more fuel-efficient options.

Read More →
Blurred photo of red car moving down a road
Industryby Hannah MitchellMarch 31, 2026

Automakers Have More Tricks Up Their Sleeves

JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.

Read More →
Ad Loading...
background view of Washington D.C. with the capitol building and cherry trees. Text says 'What's the Cost?' with two diverging arrows and the Providers and Administrator's logo
Industryby Lauren LawrenceMarch 31, 2026

Insurance Rates Continue to Fall

Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.

Read More →