Not so long ago Porsche was able to squeeze the hedge fund community with an option construction. It seems this is coming back to haunt the carmaker. On Bloomberg we found an article opining that Porsche could lose some of the 17.3 bln € paper profits they made from holding VW options because they have no money to exercise them. Through these options P. is able to control 70% of Volkswagen, but now they need to cash them before they expire.
Exercising options on 20 percent of VW’s 294.9 million outstanding shares at the strike price estimated by analysts would require 5.9 billion euros, according to data compiled by Bloomberg. The 20 percent stake would have a market value of 14.1 billion euros, based on yesterday’s price.
Exercising options on 20 percent of VW’s 294.9 million outstanding shares at the strike price estimated by analysts would require 5.9 billion euros, according to data compiled by Bloomberg. The 20 percent stake would have a market value of 14.1 billion euros, based on yesterday’s price.
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