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Havish Gupta

Figuring Outย โ€ขย 10h

PORSCHE'S ACQUISITION OF VW: Starting in 2005, the Porsche family quietly began buying VW shares. By October 2008, they owned 43% along with another 31% via options, bringing effective control to 74%. In 2008, they announced plans to acquire all of VW, but there was a problem. They effectively owned 74%, the German government held 20%, while mutual funds held another 5%. This left just 1% of VW shares publicly tradable. Hedge funds had shorted VW stock expecting it to fall. Instead, the share price shot up 1,000% in days, making VW the most valuable company on the planet for a short time. Hedge funds lost billions because of this. At this point, the Porsche family didn't actually have the capital to complete the buyout, and the German government had veto power which would have restricted the acquisition anyway. So in 2012, VW bought Porsche (the car company), while Porsche SE (the family) still owned 31.9% of VW Group. Today, VW Group is the world's 3rd largest car company in terms of valuation, doing $320 billion in annual revenue, while owning Audi, Porsche, CUPRA, ล koda, Bentley, Lamborghini, Bugatti (45%), Ducati, MAN, and Scania. Current VW Stakeholders: 31.9%: Porsche Automobil Holding SE (Porsche's Family) 25.7%: Private Shareholders / Others 20.2%: Institutional Investors 11.8%: State of Lower Saxony (German State Government) 10.4%: Qatar Holding LLC

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