Saturday, June 27, 2009

Porsche to give Qatar some of its stake in Volkswagen


Porsche

Reuters is reporting that Porsche is advancing talks toward a deal with Qatar to give the Gulf state a shareholding in Volkswagen. The move is expected to clear the way for the two German automakers to merge.

The developments come after Porsche, which racked up $12.7 billion of debt trying to take majority control of Volkswagen before the financial crisis hit its finances threatening to kill the deal. Porsche is now talking to Qatar about taking a controlling-interest in Volkswagen in an attempt to save the merger.

Sources say that Porsche is now ready to surrender its right to buy about fifth of Volkswagen’s voting shares. Porsche owns roughly 50 percent of Volkswagen.

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