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DATE News (chronologically)
08/20/09
automotive
VW Common Shares Fall for Sixth Day  Volkswagen AG common shares extended their decline in the past six days to 38 percent as Porsche SE exits the carmaker’s securities and short-sellers increase bets the losses may grow.

The ordinary shares slipped 3.7 percent to 140.64 euros as of 11:53 a.m. in Frankfurt. The preferred stock dropped 5.7 percent to 64.51 euros, paring its 15 percent jump yesterday. Porsche climbed 1.7 percent to 55.11 euros, a seventh advance.

VW’s common stock has retreated since Porsche, which held about 20 percent of options to buy the securities, said Aug. 14 it’s selling a majority of them to Qatar. The emirate paid 80 euros for the carmaker’s common shares, Manager-Magazin said yesterday, citing unidentified people close to Porsche. The magazine added that Porsche also held options on VW’s preferred stock and is selling them to Qatar.

“What’s currently happening is what everyone expected one day would occur: the common shares have to return to their fair value,” said Robert Heberger, an analyst at Merck Finck & Co. in Munich. “Since the consensus seems to be a fair value of around 100 euros, then we may still have another 40 euros to drop. That said, with VW shares you cannot exclude they remain at incredible levels for a longer time.”  Bloomberg

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