Mergers and acquisitions: Porsche shares drop on vw merger delay

by Véronique Queffélec on septembre 12, 2011


This article has been written by Philippe Latimier du Clésieux.

As we all understand evaluation of mergers and acquisitions perforce focuses attention on measurable barometers of competitiveness and returns to investors, including productivity, economies-of-scale, risk assessment, allocation of resources, distribution systems, and market structure.

When it comes to the car industry, plans to merge porsche into the volkswagen group has just been delayed. we understand that the merger has been held up by lawsuits in the us and an investigation by german prosecutors linked to porsche’s botched effort to buy VW. consequently, Porsche shares are down sharply after vw, europe’s biggest carmaker by sales, said its planned merger with Porsche faced delay due to legal hurdles.

Philippe Latimier du Clésieux