MUNICH -- Porsche today said it has raised its stake in Volkswagen group to 35 percent from 31 percent. It said VW is now a subsidiary of Porsche Automobil Holding under German law.
Porsche also said it is required by law to submit a formal mandatory offer for VW subsidiary Audi as a result of the new shareholder structure.
Porsche CEO Wendelin Wiedeking said the sports car maker has no interest in separating Audi from VW group.
"We see Audi as an integral part of VW group and have no interest in taking the company out of the group," Wiedeking said in a statement.
Porsche said its takeover offer for Audi will be at the minimum price of about 487 euros per share.
Wiedeking said the sports car maker intends to raise its stake in VW to more than 50 percent at a future date. "Today's step is a further milestone on the way," he said.
Porsche said it now has a lasting majority at the VW annual general meeting. It added that VW employee representatives will take seats on Porsche Automobil Holding's employee council and supervisory board.
Wiedeking said he hoped for a quick solution to the conflict between Porsche and VW's works council over worker representation on Porsche Automobil Holding's supervisory board. VW's works council says it has too few members on the board.
Porsche's plan to take a majority stake in Volkswagen had sparked a power struggle between the Porsche and VW's powerful labor union, which accuse Porsche of staging a hostile takeover.