Shares in Volkswagen and its top investor rise on Porsche listing hopes

2 minute read

A Porsche Taycan is displayed at a car show in Oslo, Norway, November 10, 2021. REUTERS/Victoria Klesty/File Photo

Register now for FREE unlimited access to

FRANKFURT, Feb 9 (Reuters) - Hopes for more clarity around a possible listing of Volkswagen's (VOWG_p.DE) luxury Porsche AG division lifted shares in Europe's largest carmaker and its top shareholder on Wednesday, traders said.

Volkswagen shares rose as much as 7.2% while those in Porsche SE (PSHG_p.DE), which holds a 31.4% stake in the carmaker, were up as much as 8.3%, taking the top two spots in Germany's benchmark blue-chip DAX index (.GDAXI).

They also outperformed a 3.7% gain in the STOXX Europe 600 Automobiles & Parts Index (.SXAP).

Register now for FREE unlimited access to

Traders pointed to a Reuters story fuelling hopes there could be news on a potential listing of Porsche AG at Volkswagen's annual press conference scheduled for March 15.

"That's when management will hopefully show their colours," a company source familiar with the deliberations about a listing told Reuters earlier.

"The situation is coming to a head," another person familiar with the matter said.

Volkswagen and Porsche SE, which will holds its annual news conference on March 29, declined to comment.

Volkswagen is still considering a potential partial listing of Porsche AG and has not made a decision, according to people familiar with the matter.

Sources told Reuters last year the Porsche and Piech families, who control Porsche SE, were weighing taking a direct stake in Porsche AG as part of a possible listing of the luxury carmaker.

"The move can't be about raising cash" as this would be a sign of financial weakness, said Arndt Ellinghorst, automotive expert at data firm QuantCo, adding a spin-off of Porsche AG would be a "much more elegant" way to list the asset compared with a partial initial public offering.

Register now for FREE unlimited access to
Reporting by Jan Schwartz in Hamburg, Christoph Steitz and Anika Ross in Frankfurt and Danilo Masoni in London Editing by Mark Potter

Our Standards: The Thomson Reuters Trust Principles.