Investors say that Porsche AG succeeded in convincing preferred shareholders to back a EUR5 billion ($6.9 billion) stock sale since the deal may offer the chance to buy into Volkswagen AG at a discount. Porsche adds that the projected share sale is a "key precondition" for the VW merger by helping Porsche to reduce debt.
CFO Hans Dieter Poetsch says that Porsche seeks to complete the capital increase by May 30, 2011.
The deadline would be extended until Aug. 30, 2011 if U.S. lawsuits against Porsche result in a delay. Porsche's shareholders are voting at an extraordinary meeting on whether to approve raising the funds, half of which are derived from the Piech and Porsche families, who control the common shares.
The plan needs the approval of 75 percent of both common and preferred shareholders present at the meeting in order to pass. The Stuttgart, Germany-based company is in the process of merging with Volkswagen AG.
Porsche's preferred shares increased by 28 percent in 2010, while Volkswagen's preferred stock has surged 90 percent. Poetsch says that Porsche's liabilities will be considerably reduced through the capital increase. [via autonews - sub. required]