BERLIN - Management at Volkswagen, Europe`s biggest car maker, Friday said it had unanimously rejected a takeover offer from German luxury sports car maker Porsche.
VW said in a statement following a special session of its supervisory board that management was convinced that "the value of Volkswagen shares is superior to the price offered."
Stuttgart-based Porsche announced in late March that it would exercise an option to buy an additional 3.6-percent stake in VW.
The additional shares raised Porsche`s interest in VW to 30.9 percent, effectively obliging it under German law to launch a public takeover for all outstanding VW shares.
Under an offer to run until May 29 Porsche said it would propose 100.92 euros per ordinary share, which is well below VW`s current price of around 111-112 euros.
Analysts have predicted that few VW shareholders would be tempted to take up Porsche`s offer, adding that Porsche in effect has no intention of buying all of VW`s share capital just yet.
They see the move as a means by which Porsche could increase its stature in VW without being forced to pay for any additional shares.
05/11/2007 18:50 GMT