Posted on 10/29/2008 7:09:03 AM PDT by TigerLikesRooster
Porsche to sell some VW shares to meet short demand
By Steve Goldstein, MarketWatch
Last update: 6:43 a.m. EDT Oct. 29, 2008
LONDON (MarketWatch) -- Porsche Automobil Holding on Wednesday said it would sell up to 5% of its stake in Volkswagen AG to meet unprecedented demand for the Wolfsburg automaker's stock after arguably the biggest short squeeze in stock-market history.
The move's designed "to avoid further market distortions and the resulting consequences for those involved," Porsche (DE:PAH003: news, chart, profile) said -- but laid the blame for this week's massive rise in VW shares squarely with the short sellers themselves.
"Porsche denies all responsibility for these market distortions and for the resulting risks to which the short sellers have exposed themselves," the company said in a statement.
/snip....
The scramble for VW stock was intense in part because there were so few shares available: Porsche has effective control over 74% of VW, and the Lower State of Saxony, which is fighting both Porsche and the European Union to preserve a blocking stake, has another 20%.
Banks including Goldman Sachs (GS Goldman Sachs Group, Inc) and Societe Generale (FR:013080: news, chart, profile) have been hurt by speculation of involvement in the VW short squeeze. A Wednesday report in The Wall Street Journal, citing people familiar with the funds, named some of the most famous hedge-fund managers as being caught in the VW short squeeze: Greenlight Capital, SAC Capital, Glenview Capital, Marshall Wace, Tiger Asia, Perry Capital and Highside Capital. See story at WSJ.com
(Excerpt) Read more at marketwatch.com ...
Ping!
Looks like the US Government will have to bail out Goldman Sachs again.
SCREW GOLDMAN SACHS!
I would get a kick out of seeing GS stock down to $10 per share. It is basically an organization of shysters in suits. The business model is dead, but kept alive through corruption at the highest levels of government. “King Henry” Paulson is “feathering his nest” with the recent $10 billion he sent to GS. When he leaves office Jan 20th, he will head right back there and they’ll give him $100 million “signing bonus”.
I so saddened.
“Poor Warren Buffett caught shorting VW”
Where did you see that? The article didn’t include Berkshire Hathaway.
Obama supporters shorting stocks should be made to pay the price.
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