Porsche AG, the world's most profitable carmaker, plans to raise its current 27.3 percent stake in Volkswagen AG to up to 31 percent, triggering a mandatory offer for the whole of the company.
Frank Gaube, a Porsche spokesman, said that Porsche did not plan to acquire Volkswagen. "We do not want a majority," he said.
"We want to be able to act, to increase our stake when it suits us."
Porsche said the move came in part as a response to fears that European Union judges will force the German government to repeal its law blocking a foreign takeover of Volkswagen, which is partly owned by the state of Lower Saxony and is seen as both an industrial powerhouse and a major provider of jobs.
The expected offer is well below Volkswagen's closing share price on Friday of 117.70 euros. Porsche said it will offer 100.92 euros a share, which valued the company at 42.7 billion euros ($56.7 billion).
The German state of Lower Saxony, which controls roughly 20 percent of Volkswagen, aims to remain a large shareholder together with Porsche in the world's fourth biggest carmaker, state premier Christian Wulff said.
Volkswagen shares were up 5.36 percent to 117.70 euros yesterday, while Porsche rose 21.56 euros to 1114.93 euros.
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