The fact that Porsche is about to buy VW is causing massive turbulences with VW shares. During most time of the year they had a value of 150 EUR. When all indices started to fall it was just the opposite with VW shares. They rushed to 300 EUR and higher even if every analyst on the market was calling this price much too high. Then a few days ago VW dropped back to 150 EUR, something most people expected.
Yesterday VW rose to 520 EUR.
Today VW rose to 1000 EUR as highest price which means it was with a total share value of 300 billion EUR the most expensive company in the world. Share price dropped to 870 EUR later on though.
Incredible.
Full Version: VW, the most expensive company in the world
Yeah I was just reading last night that based on Porsche's announcement of their intention to own 75% of VW sometime in 2009 caused their share prices to double on the spot. That's just nutty stuff right there.
What effect does this have on a company? Could VW shares split?
They were only the most expensive car company in the world for a short time. Their market capitalization hit $364B USD, a hint over $343B for ExxonMobil.
VW shares could split at any time, but that really won't have any effect on it other than (maybe) mildly dilute ownership. And with further ownership looking to get picked up by Porsche, I don't see why they would do this. But it is a possibility.
I'm more curious as to this move to 75%. U.S. GAAP dictates that when a company owns 80% or more of a company, there are some big consolidation changes made to the financial statements of the company. I'm not sure what IFRS (International Financial Reporting Standards) say about the practice, but, as a point of economic form over substance, if Porsche hasn't already claimed VW as consolidated thanks to all of the related parties, I'd be interested to see if they do now. Should be interesting times, especially to see if Porsche can get the capital to grab those shares. I'm pretty sure they don't have the cash, and its not like they're going to get that financed any time soon.
VW shares could split at any time, but that really won't have any effect on it other than (maybe) mildly dilute ownership. And with further ownership looking to get picked up by Porsche, I don't see why they would do this. But it is a possibility.
I'm more curious as to this move to 75%. U.S. GAAP dictates that when a company owns 80% or more of a company, there are some big consolidation changes made to the financial statements of the company. I'm not sure what IFRS (International Financial Reporting Standards) say about the practice, but, as a point of economic form over substance, if Porsche hasn't already claimed VW as consolidated thanks to all of the related parties, I'd be interested to see if they do now. Should be interesting times, especially to see if Porsche can get the capital to grab those shares. I'm pretty sure they don't have the cash, and its not like they're going to get that financed any time soon.
QUOTE(midnightdorifto @ Oct 28 2008, 11:12 PM) 
They were only the most expensive car company in the world for a short time. Their market capitalization hit $364B USD, a hint over $343B for ExxonMobil.
VW shares could split at any time, but that really won't have any effect on it other than (maybe) mildly dilute ownership. And with further ownership looking to get picked up by Porsche, I don't see why they would do this. But it is a possibility.
I'm more curious as to this move to 75%. U.S. GAAP dictates that when a company owns 80% or more of a company, there are some big consolidation changes made to the financial statements of the company. I'm not sure what IFRS (International Financial Reporting Standards) say about the practice, but, as a point of economic form over substance, if Porsche hasn't already claimed VW as consolidated thanks to all of the related parties, I'd be interested to see if they do now. Should be interesting times, especially to see if Porsche can get the capital to grab those shares. I'm pretty sure they don't have the cash, and its not like they're going to get that financed any time soon.
VW shares could split at any time, but that really won't have any effect on it other than (maybe) mildly dilute ownership. And with further ownership looking to get picked up by Porsche, I don't see why they would do this. But it is a possibility.
I'm more curious as to this move to 75%. U.S. GAAP dictates that when a company owns 80% or more of a company, there are some big consolidation changes made to the financial statements of the company. I'm not sure what IFRS (International Financial Reporting Standards) say about the practice, but, as a point of economic form over substance, if Porsche hasn't already claimed VW as consolidated thanks to all of the related parties, I'd be interested to see if they do now. Should be interesting times, especially to see if Porsche can get the capital to grab those shares. I'm pretty sure they don't have the cash, and its not like they're going to get that financed any time soon.
The Gelato i am eating is like a 911 Turbo. Bad ass.
Porsche has no chance to reach 80% of ownership, at least now. They currently own 42.6% of VW and they control a further share of 32.5% by options they bought on VW shares.
A bit over 20% is owned by the federal state of Niedersachsen (Lower saxony) and the government will never sell it as far as I can see. In fact they feel offended that a small company like Porsche buys the big VW and then even has the impertinence wanting to make VW more profitable.
A bit over 20% is owned by the federal state of Niedersachsen (Lower saxony) and the government will never sell it as far as I can see. In fact they feel offended that a small company like Porsche buys the big VW and then even has the impertinence wanting to make VW more profitable.
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