Trigonx
10-29-2008, 10:20 PM
It seems Porsche outsmarted the hedgefunds by hedgefunding themselves.
Quick summary for those who don't want to read the articles
-Porsche currently owns 42.6% of VW and has set options to purchase 31.5% of VW in the next year. Hedgefunds had shorted VW because they believed that VW was overpriced with the financial crisis upon us. The news of Porsche basically owning 74.1% of porsche within the span of a year came out on October 26th(Sunday) and by Tuesday 28 VW share price climbs to close at €919.5, briefly above €1000 making it the world's biggest company, ahead of Exxon Mobil. On the 29th it dropped down to €500.
http://www.marketwatch.com/charts/gifquotes/story-sm-ss.img?symb=XE%3A766400&time=3&freq=7&compidx=aaaaa:0&comp=&uf=0&lf=1&lf2=0&lf3=0&state=0&sid=470428&startdate=&enddate=39750&nosettings=1&style=1012&size=1&mocktick=1&rand=
this article is a timeline.
http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article5036784.ece
"How bosses at Porsche outmanoeuvred Volkswagen" -I liked this article, its pretty informative.
http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article5042569.ece
Quick summary for those who don't want to read the articles
-Porsche currently owns 42.6% of VW and has set options to purchase 31.5% of VW in the next year. Hedgefunds had shorted VW because they believed that VW was overpriced with the financial crisis upon us. The news of Porsche basically owning 74.1% of porsche within the span of a year came out on October 26th(Sunday) and by Tuesday 28 VW share price climbs to close at €919.5, briefly above €1000 making it the world's biggest company, ahead of Exxon Mobil. On the 29th it dropped down to €500.
http://www.marketwatch.com/charts/gifquotes/story-sm-ss.img?symb=XE%3A766400&time=3&freq=7&compidx=aaaaa:0&comp=&uf=0&lf=1&lf2=0&lf3=0&state=0&sid=470428&startdate=&enddate=39750&nosettings=1&style=1012&size=1&mocktick=1&rand=
this article is a timeline.
http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article5036784.ece
"How bosses at Porsche outmanoeuvred Volkswagen" -I liked this article, its pretty informative.
http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article5042569.ece