RE: Porsche Accuses VW Of Blackmail
Tuesday 30th June 2009
Let's not forget that Porsche makes cars, too...The soap opera that is Porsche’s financial wranglings with VW took a new twist at the weekend when Porsche’s chairman, Wolfgang Porsche, accused VW of attempting to blackmail the debt-laden sports car company.
Porsche Accuses VW Of Blackmail
Battle for control at Porsche re-ignites
Let's not forget that Porsche makes cars, too...
According to an article in German news magazine Der Spiegel, VW has been pressing for Porsche to accept a revised merger plan between the two companies by the end of June, although VW has denied these allegations.
In response, Wolfgang Porsche said: “Ultimatums do not belong in the 21st century. We won’t be blackmailed.”
After racking up 9 billion euros (£7.6bn) in debt in the course of its recently aborted attempt to take over VW, Porsche has been left struggling to finance itself, despite owning more than half of VW’s shares. As a result, the major Porsche shareholders agreed to a merger between the two companies to help bail out Porsche.
But Wolfgang Porsche and his cousin Ferdinand Piech, who is both VW chairman and a major Porsche shareholder, cannot agree how best to help Porsche. Piech is said to favour the sale of 49 per cent of the sports car business to VW to help prop up the company, while Mr Porsche is keener on a capital increase of Porsche’s holding company.
Piech is also keen that Porsche sells 20 per cent of its stake in VW to the Gulf state of Qatar, while Mr Porsche – and Porsche CEO Wendelin Wiedeking – also wants Qatar to invest directly in Porsche.
Discussion
So Piech is Porsche's cousin, and wants to be his owner, but Piech wants to be his investor, but the Qatari royal family (no relation) wants to be Piech's sugar daddy, however Porsche, in the shape of Porsche, don't like Piech blackmailing them.
Where does Peaches figure in this?
Confused?
Where does Peaches figure in this?
Confused?
Edited by Gridl0k on Tuesday 30th June 10:45
Families are complex enough, business can be made to be complex, but making a family business complex takes some doing. This saga sounds more like what you'd expect in Italy not from the staid Germans.
As has been stated Porsche screwed themselves through an aggressive stategy that was defended by VW who protected their own interests (though there was soem share dealing skullduggery at the time).
Ultimatums are not blackmail, it only feels like it if thats your only option.
As has been stated Porsche screwed themselves through an aggressive stategy that was defended by VW who protected their own interests (though there was soem share dealing skullduggery at the time).
Ultimatums are not blackmail, it only feels like it if thats your only option.
Gridl0k said:
So Piech is Porsche's cousin, and wants to be his owner, but Piech wants to be his investor, but the Qatari royal family (no relation) wants to be Piech's sugar daddy, however Porsche, in the shape of Porsche, don't like Piech blackmailing them.
Where does Peaches figure in this?
Confused?
Sounds like an episode from SOAPWhere does Peaches figure in this?
Confused?
Frimley111R said:
Yep, I work for BCMS Corporate, selling larger businesses and it is one of the key points we make. With only one potential acquirer they have all the power, you need more than one but unfortunately for Porsche they don't have the option of finding someone else.
Off Topic I know but in a similar business myselfThe facts are hard to understand as Wiedeking(carefully spelt)boasted about his rout of the Hedge Funds when Porsche secretly acquired VW shares.
Now it turns out that the "take over" of VW is aborted or stillborn.
Frankly I don't give a damn -except, I did think that Porsche's original strategy was to acquire a share of VW to become a partner and secure supply lines of componentry for the Cayenne and Panamera. This could have then parlayed into a sub-boxster roadster from the snazzy VW BlueSport concept which deserves production as a VW but a lightweight 5 Cylinder Turbo (TTRS?) could have allowed a Porsche version to sell in the -£30k market and give Porsche admirers a chance to get on the first step on the ladder of Porsche ownership, provided Porsche used a new design language and not simply graft a Boxster nose on the BlueSport or another Panamera gloop sloop.
Porsche should have also sorted quality problems of existing Boxster and 996 owners engine problems and grabbed positive PR in honouring their engineering reputation with a more generous remedial action policy instead of their Walk Away Renee attitude in the UK. Anyone from Porsche UK care to reply?
Now it turns out that the "take over" of VW is aborted or stillborn.
Frankly I don't give a damn -except, I did think that Porsche's original strategy was to acquire a share of VW to become a partner and secure supply lines of componentry for the Cayenne and Panamera. This could have then parlayed into a sub-boxster roadster from the snazzy VW BlueSport concept which deserves production as a VW but a lightweight 5 Cylinder Turbo (TTRS?) could have allowed a Porsche version to sell in the -£30k market and give Porsche admirers a chance to get on the first step on the ladder of Porsche ownership, provided Porsche used a new design language and not simply graft a Boxster nose on the BlueSport or another Panamera gloop sloop.
Porsche should have also sorted quality problems of existing Boxster and 996 owners engine problems and grabbed positive PR in honouring their engineering reputation with a more generous remedial action policy instead of their Walk Away Renee attitude in the UK. Anyone from Porsche UK care to reply?
S1 Mon said:
I'm totally confused over the whole Porsche/VW saga.
Is there anyone out there who can explain what's gone on in words of one syllable?
1. Germany (under pressure from the EU) lifts the ban on foreign ownership of German companies.Is there anyone out there who can explain what's gone on in words of one syllable?
2. Porsche get worried that their supply of VW parts could be in foreign ownership, for example Tourag bodies to make Cayennes out of. So Porsche start buying VW shares.
3. Porsche does quite well in playing the markets and makes enough profit that they come up with a cunning plan to buy a majority stake in VW. Porsche borrows money to achieve this.
4. Markets change and now Porsche are struggling to pay back the money they borrowed to do this.
5. Today's article.
(Or something)
Strawman said:
S1 Mon said:
I'm totally confused over the whole Porsche/VW saga.
Is there anyone out there who can explain what's gone on in words of one syllable?
1. Germany (under pressure from the EU) lifts the ban on foreign ownership of German companies.Is there anyone out there who can explain what's gone on in words of one syllable?
2. Porsche get worried that their supply of VW parts could be in foreign ownership, for example Tourag bodies to make Cayennes out of. So Porsche start buying VW shares.
3. Porsche does quite well in playing the markets and makes enough profit that they come up with a cunning plan to buy a majority stake in VW. Porsche borrows money to achieve this.
4. Markets change and now Porsche are struggling to pay back the money they borrowed to do this.
5. Today's article.
(Or something)
So, according to Der Spiegal, Merc is desperate for cash & having problems getting foreign investors to up their stakes. Porsche is down sales by huge amounts & they have a monumental bank overdraft problem. VW's sales are healthier but unless Piech stops playing silly sods with his cousin he is taking the risk that Porsche's overdraft brings them both down. Opel is about to be taken over by a Austrian/Canadian firm backed by Russian money but Spiegal seems to think that nobody's seen the cash yet. BMW has some link-up work with Merc but has turned down merger discussions feeling that it can go it alone with Spiegal quoting industry pessimists as saying that Beemer could go the same way as Merc if they don't take their heads out of their bottoms. Karmann, manufacturers of open top cars to EU car manufacturers for years, has just shut it's doors for the last time. Which leaves Ford which has lost less sales/cash than anybody else but is making the writers at Der Spiegal nervous 'cos it still hasn't asked for any Govt money. Unlike Merc, BMW, Opel, VW & Porsche who have & some of whom have already p*ssed it up the wall.
Gassing Station | General Gassing [Archive] | Top of Page | What's New | My Stuff