Porsche 2010 Annual Report Download - page 180

Financials
178
[13] Development of investments accounted for at equity and other financial assets
The investments accounted for at equity comprise a carrying amount of the investment in
Volkswagen AG of €20,709 million (prior year: €19,086 million) and a carrying amount for the
investment in Porsche Zwischenholding GmbH of €3,549 million (prior year: €3,621 million).
All of the ordinary and preference shares in Volkswagen AG held by Porsche SE were
pledged as collateral on liabilities and other obligations of Porsche SE until they are settled or
dispensed with in some other way. Until the liabilities with first-rank security have been partly repaid,
the ordinary and preference shares cannot be sold without the prior written approval of a trustee of
the collateral. However, Porsche SE can still exercise its voting rights and is also entitled to divi-
dends from the ordinary and preference shares subject to the creditors’ right to issue instructions
otherwise in restrictively defined, exceptional cases. In addition, Porsche SE may sell subscription
rights associated with the shares.
The investment in Porsche Zwischenholding GmbH has been assigned as collateral to a
trustee. The trustee holds the investment in trust for Porsche SE and as collateral for the financing
banks of Porsche SE. Porsche SE remains the economic owner, exercises voting rights and re-
ceives the profit distributions. The investment in Porsche Zwischenholding GmbH was also pledged
as collateral for financial liabilities. The right of lien cannot be exercised before Volkswagen AG has
had the opportunity to acquire the investment for €3.9 billion arranged as consideration in connec-
tion with the put option.