Porsche seeks price tag of up to $75b

BERLIN, Sept 19 (Reuters): Volkswagen shares hovered around breakeven on Monday, reflecting a mixed response from investors to the automaker's listing plans for sports car brand Porsche AG in what could be Europe's third biggest initial public offering.
Volkswagen said on Sunday it was aiming for a valuation of 70 billion-75 billion euros ($70-75 billion) for Porsche AG, slightly below some estimates of up to 85 billion euros, but far outstripping the 49-billion-euro price tag for rival BMW and Mercedes-Benz's 61 billion euros.
Porsche AG aims to win over investors with its track record of success and high margins, even as shares of other luxury carmakers like Ferrari and Aston Martin have suffered this year in the tumult on European stock markets.
But the structure of the listing, in which Volkswagen's largest shareholder - Porsche SE - will receive a blocking minority of 25 per cent plus one of the voting ordinary shares, has sparked criticism from some fund managers.
The IPO will list 25 per cent of preferred shares, which do not have voting rights, meaning stock market investors will own just 12.5 per cent of Porsche AG's capital and have little say.
Nonetheless, the listing has attracted cornerstone investors including Qatar Investment Authority, which is buying 4.99 per cent of the offering; Abu Dhabi's ADQ, which is investing 350 million euros; as well as T. Rowe Price and Norway's sovereign wealth fund, investing 750 million euros each.