20, even as the stock fell, probably because some shorts saw it as still higher than fundamental value. VW short interest actually rose the week of Oct.
The further VW's stock falls, the less valuable Porsche's options become. 26 news followed a week in which VW's shares fell nearly 50%, to about €210 per share. The allegations of manipulation come because that Oct. Until now, Porsche had repeatedly downplayed the idea of getting 75% of VW in the intermediate term. 26 that it held 42.6% of VW's shares, up from 35%, and an additional 31.5% in cash-settled VW options, for a total of 74.1%. 24, according to Data Explorers of London, it's no surprise that the stock took off as shorts scrambled to cover their bets last week. With nearly 13% of VW sold short as of Oct. Given Porsche's VW holdings, the 20% held by the German state of Lower Saxony, and the 5% held by index funds, there might have been as little as 1% of VW's 294 million outstanding shares available at the beginning of the week. 20), VW isn't trading on fundamental value, which would be about €100 per share, but rather on a huge short squeeze. The sports-car maker said accusations of market manipulation were "without any foundation whatsoever."Īs Barron's has noted (most recently in " World's Most Overvalued Big Stock," Oct. Porsche set off the most recent frenzy by announcing it wanted to acquire 75% of the company by 2009, up from an earlier target of 50%-plus. VW shares (ticker: VOW.Germany) have risen a total of 220% this year as Porsche (PAH3.Germany) has moved to take over the company. Last week's surge, which briefly gave the Bug-maker the largest market value in the world, prompted Germany's market regulator, BaFin, to investigate the movement of VW shares for evidence of market manipulation or insider trading.
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