Keeping with the car theme I did a post a few months back on VW. For those of you who aren’t aware the last week has seen it been taken into the hands of Porsche which has had a number of interesting impacts. Firstly I dislike Porsche and hope the government can gain control just to prevent them from turning VW into another boring and backward company. I mean look at what Audi and VW could do with the Q7 and Touareg 4×4 SUVs compared to Porsche’s Cayenne! And can you think of anything worse than a Audi TT or Golf not changing for 30-years like the 911.
What happened last week was that for a moment VW became the most valuable company in the world and secondly Porsche absolutely screwed the hedge funds (ironically most of their customers probably). They apparently managed to gain 70% ownership through lots of different companies while the hedge funds were betting on the price of VW to fall. However what they didn’t realise until it was too late was that there weren’t that many shares left on the open market making Porsche very rich and their customers very poor as VW’s share price rocketed!