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GERMAN luxury sportscar maker Porsche has taken over Volkswagen, the biggest European car manufacturer, after purchasing more than 50 per cent of VW shares, Porsche said.
Porsche said in a brief statement overnight that by buying new VW shares, it "will thus increase its participation to 50.76 per cent" of the group's capital, compared with 42 per cent before.
The news sent Volkswagen shares rocketing up 13.48 per cent in early afternoon trading on the Frankfurt stock market.
The takeover by a family-run company run by billionaire shareholders has been a culture shock for Volkswagen, a sprawling national institution seen as a model for cooperation between shareholders and unions.
Porsche launched its takeover bid in 2005, saying it would turn Volkswagen into a "normal" enterprise and incurring fierce opposition from the unions.
Porsche had initially planned to acquire more than 50 per cent of VW's stock last year but was forced to delay the operation after the value of the shares soared amid frantic stock market speculation.
At one point, they traded for more than €1000 ($1867) per share, making VW briefly the biggest company in the world by stock market valuation.
On Monday, VW shares closed at €254.74, close to the range Porsche had set for itself of between €200-250.
Porsche said in a brief statement overnight that by buying new VW shares, it "will thus increase its participation to 50.76 per cent" of the group's capital, compared with 42 per cent before.
The news sent Volkswagen shares rocketing up 13.48 per cent in early afternoon trading on the Frankfurt stock market.
The takeover by a family-run company run by billionaire shareholders has been a culture shock for Volkswagen, a sprawling national institution seen as a model for cooperation between shareholders and unions.
Porsche launched its takeover bid in 2005, saying it would turn Volkswagen into a "normal" enterprise and incurring fierce opposition from the unions.
Porsche had initially planned to acquire more than 50 per cent of VW's stock last year but was forced to delay the operation after the value of the shares soared amid frantic stock market speculation.
At one point, they traded for more than €1000 ($1867) per share, making VW briefly the biggest company in the world by stock market valuation.
On Monday, VW shares closed at €254.74, close to the range Porsche had set for itself of between €200-250.
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