WSWS wrote:In October 2008, Porsche announced that it owned 51 percent of the shares of VW, with options for a further 25 percent. The company’s share value—€50 in 2005 and rising to over €200 by October 2008—exploded within a few hours following this announcement, briefly hitting €1,000. The background was the fact that the state of Lower Saxony had a 20 percent shareholding in Volkswagen, and thus only 5 percent of the company’s shares were being freely traded. Several banks were said to have suffered losses running into billions during this period, because they had speculated on falling Volkswagen share values. This was also the case for billionaire Adolf Merckle, who committed suicide a short time afterwards.
Porsche explained at the same time that it was seeking a control and profit removal contract by the end of 2008. The goal was to get hold of Volkswagen’s overflowing coffers of more than €10 billion. In a normal corporation, that would not be a problem with a 75 percent majority shareholding, since decisions can only be blocked with a 25 percent shareholding. In case of VW, however, there is also the “Volkswagen law,” granting this veto right to the state of Lower Saxony for its 20 percent shareholding.
But the appeal by the European Commission never materialised. For Porsche, which faced a mountain of debt of over €14 billion to fund its purchase of Volkswagen shares and options, as later became known, time was beginning to run out. The economic crisis meant Porsche’s sales fell by 25 percent, and the banks were no longer willing to extend their credit. Porsche faced bankruptcy. Its debts far exceeded the value of the company, which in spring 2009 Volkswagen valued at €8 billion.
Also in spring 2009, there followed a series of secret negotiations, at the end of which a solution was presented that simply turned the tables. Volkswagen would acquire Porsche, and Porsche’s owners, the Porsche/Piëch families, would be the largest single shareholders, with 35-40 percent controlling stake in Volkswagen.
So far the only detail that is known is that money from Volkswagen would be used to fund the €12.4 billion for the purchase of the Porsche auto manufacturing business and pay off part of the debts, as well as provide €3.5 billion for the Porsche auto sales company in Salzburg. The remaining debt would be settled by the Emirate of Qatar, which would receive a 20 percent shareholding in VW.
These are the facts, Porsche's only wrongdoing was that it short sold VW stocks to cover its gaping deficit while trying to swallow VW.
Why would Wendelin Wiedeking recieve a 50 million compensation package for fabricating figures?
The accusations you level are criminal offence's in Germany yet he walks free 50 million richer