Case Study: Porsche versus Volkswagen

Abstract

This case study describes Porsche’s attempt to acquire Volkswagen. It covers the timeline of events and major press releases, the history of the two companies, their operating and financial performances and ownership structures. The case also illustrates the role of the state as a shareholder, the importance of financial regulation, arbitrage, hedge funds, short-selling and market efficiency. The case is designed to stimulate students and create a desire to dig deeper. A teaching note provides a more detailed and comprehensive picture including possibilities for role play. The teaching note can be obtained from the author.

Keywords: Porsche; Volkswagen; takeover; short squeeze; hedge funds