Volkswagen Swallowing Porsche For $5.5B Ahead Of Schedule

Law360, New York (July 5, 2012, 12:00 PM EDT) -- Volkswagen AG will finalize its takeover of Porsche Automobil Holding SE two years sooner than planned, paying €4.46 billion ($5.52 billion) to purchase the 50.1 percent of the luxury automaker it doesn't already own, the buyer said Wednesday.

The deal includes some clever tax work that reduces Volkswagen's tax liability — by including a single Volkwagen share in the transfer, the transaction will be taxed as a reorganization rather than an outright sale — and brings to a close a four-year battle between Volkswagen, Europe's biggest...
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