German sports car maker Porsche is boosting its stake in Volkswagen above 30 per cent to trigger a mandatory takeover offer.
The Stuttgart-based car maker has exercised an option to take an extra 3.6 per cent voting stake in Volkswagen, taking its holding to 30.9 per cent on Wednesday.
Raising its stake past 30 per cent requires Porsche to make a mandatory takeover offer to other VW shareholders under German law.
Porsche said on Saturday it expected to offer €100.92 per VW ordinary share plus the legal minimum for VW preference shares.
By offering investors the minimum amount required, a hefty discount to Friday's closing price of €117.70, Porsche can cross the 30 per cent threshold on the cheap and never be forced to launch a bid again.
Today's announcement caps months of speculation that a bid was imminent, driving VW stock up by more than a third this year to record highs, as many investors believed Porsche part-owner and VW Chairman Ferdinand Piech wanted to cement his control over Europe's biggest car maker.