Led by CEO Wendelin Wiedeking, Porsche began quietly accumulating Volkswagen shares. By 2008, Porsche had secretly gained control of nearly 74% of the company through complex stock options. At the time, Porsche was jokingly referred to as "a hedge fund with a carmaker attached".
: With Porsche owning 74% and the German government holding 20%, only about 6% of shares were actually available to buy. buy volkswagen
The goal was simple but audacious: for the small sports car maker to buy its massive supplier , Volkswagen. The Short Squeeze of the Century Led by CEO Wendelin Wiedeking, Porsche began quietly
: Many investors had bet against Volkswagen, assuming its stock was overvalued. : With Porsche owning 74% and the German
When Porsche finally revealed its massive position in October 2008, it triggered the biggest short squeeze in history.
However, the 2008 global financial crisis derailed Porsche's plans. The company had taken on massive debt to fund its takeover bid just as credit markets froze.