The goal was simple but audacious: for the small sports car maker to buy its massive supplier , Volkswagen. The Short Squeeze of the Century
: Many investors had bet against Volkswagen, assuming its stock was overvalued.
However, the 2008 global financial crisis derailed Porsche's plans. The company had taken on massive debt to fund its takeover bid just as credit markets froze. buy volkswagen
In a dramatic reversal, the "prey" became the predator. Volkswagen, which had deep cash reserves, stepped in to rescue the overextended Porsche. By 2012, Volkswagen had bought 100% of Porsche AG , completing an "inverse takeover" that left the two companies inextricably linked .
: Volkswagen’s stock price rocketed from 200 euros to over 1,000 euros in just two days. The goal was simple but audacious: for the
: With Porsche owning 74% and the German government holding 20%, only about 6% of shares were actually available to buy.
: For a brief moment, Volkswagen became the most valuable company in the world. The Table Turns The company had taken on massive debt to
Today, the relationship remains a "messy affair": Volkswagen owns the Porsche car brand, but the Porsche family's holding company (Porsche SE) still holds the majority of voting rights in Volkswagen. Porsche: The Hedge Fund that Also Made Cars - Priceonomics