BERLIN (AP) -- Porsche raised its stake in fellow German automaker Volkswagen on Tuesday to more than 35 percent -- a move that it said gives effective control over Europe's biggest car maker.
Porsche Automobil Holding SE previously held a stake of a little more than 30 percent and has said it plans to raise that to a majority holding. It said that it acquired an additional 14.4 million ordinary VW shares, or 4.89 percent, on Tuesday -- taking its share of the voting rights to 35.14 percent.
Porsche said in a statement that "as a result of this acquisition, Volkswagen ... has become a subsidiary of Porsche Automobil Holding SE" under German securities laws.
"This step ensures that Porsche has a lasting majority at the VW annual general meeting," the Stuttgart-based company said. It added that Volkswagen employee representatives will now take seats on Porsche's employee council and supervisory board.
"Our goal continues to be to increase our stake in Volkswagen to more than 50 percent," chief executive Wendelin Wiedeking said. "Today's step is a further milestone along this road."
Shares of Porsche Automobil Holding were down 3 percent at 82.28 euros ($116.84) in Frankfurt, while Volkswagen AG shares edged up 0.5 percent to 207.67 euros ($294.89).