VW Will Accelerate Porsche Acquisition, Pay More

 
on June 14 2012 9:41 AM
Volkswagen And Porsche Logos
England's High Court blocked a car-hacking study that would have revealed a security flaw in a computer chip used by Volkswagen to encryption keys. Reuters

Volkswagen AG (Frankfurt: VOW) will pay €600 million ($750 million) more than originally expected for the remaining 50.1 percent of sports car maker Porsche, bringing the total cost of the acquisition to €4.5 billion, up from €3.9 billion, according to Bloomberg Thursday.

Wolfsburg-based Volkswagen is rushing to complete the merger with Stuttgart-based Porsche as soon as possible, according to Reuters, taking the wind out of a previous announcement that the companies had found a tax-exempt method for the deal.

After two years in the works, the deal was put on hold in September following lawsuits by short sellers in the U.S. claiming Porsche had a hidden stockpile of Volkswagen shares which caused losses of more than $1 billion for investors, according to Reuters. Volkswagen AG (Frankfurt: VOW) shares fell 1.55 percent to €114.55 Thursday.

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