Car trouble

Porsche’s shareholders seem unable to make up their minds about the luxury carmaker’s E3.3bn investment in Volkswagen. The stock has yo-yoed up and down since the story broke at the weekend. But the uncertainty is hard to understand. Buying 20% of VW is clearly a poor use of Porsche’s capital. Porsche is putting a lot of capital at risk by making this minority investment. It appears to be buying large numbers of shares in the market at a substantial premium. VW’s shares have a fair value of abo...