Ordinary shares in Volkswagen plunged by 3.12 percent to e73.87 (R810) in morning trading on Monday after VW said they would be replaced by preferred shares in the DAX index of German blue-chip stocks.
The DAX had risen by 0.62 percent overall, while VW preference shares showed a gain of 1.44 percent to 66.90 euros in the over-the-counter trading.
The biggest European carmaker said on Monday that preference shares, which do not comprise voting rights, would replace ordinary shares in the DAX index, where VW stock has been listed for 21 years.
The move came after the Gulf emirate of Qatar finalised its purchase of a 17 percent stake in VW, leaving less than 10 percent of the group's shares in free float, the minimum for a DAX listing.
VW, meanwhile, is in the process of taking over Porsche, the German luxury sportscar maker, and plans to finance the purchase with a capital increase worth around eight billion euros through the issue of preference shares.
Monday's change should "trigger a positive VW preference share price reaction" in the short term, Merck Finck analyst Robert Heberger said, though he maintained a "sell" recommendation owing to weak prospects in 2010.
Porsche is currently the biggest VW shareholder, followed by the German state of Lower Saxony, where VW is based and which owns around 20 percent of its shares. - I-Net Bridge