Volkswagen's Widening Stock Gap Reflects Concern on Capital Plan
- Chances of share sale more than 50 percent, analyst says
- Discount of non-voting versus voting shares at 2009 high
Is Humility Key to Volkswagen’s Redemption
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Volkswagen AG has already set aside billions in potential costs related to its emissions-rigging scandal. Mounting speculation that the crisis-stricken company will sell stock to raise funds is sending its non-voting shares to the biggest discount versus voting ones in six years.
A capital increase would dilute the value of the more commonly traded, non-voting stock -- and investors have taken note. The price of those shares has fallen 23.90 euros below its less-traded stock, reversing a premium from before the scandal broke. VW has seen as much as 29.8 billion euros ($33.9 billion) wiped from its market value after revealing last month it installed software to cheat on pollution tests.