Monday 13th July 2009

VW Ups The Ante In Porsche Merger Bid

VW increases its bid for a stake in the German sports car maker

Volkswagen has raised the stakes in its bid to purchase a 49.9 per cent share in Porsche AG.

VW originally bid between 3 billion and 4 billion euros for a stake in the German sports car maker, a move which would help alleviate some of the 9 billion euros of debt Porsche SE (the car maker's parent company) has built up in its attempt to take over VW.

Now, though, VW has reportedly pushed its bid to considerably more than 4 billion euros, though German weekly Der Spiegel has said that Porsche CEO Wendelin Wiedeking still reckons the new sum is not enough.

Instead, Wiedeking is said to be keener on an investment by the state of Qatar in 25 per cent of the whole Porsche organisation. In that scenario, Qatar would pay 7 billion euros for a quarter of the Sports car business and Porsche's options on VW stock.

The preferred method of saving Porsche is likely to be decided on 23rd July, when the Porsche supervisory board meets.

Author: Riggers

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17 comments on this story

Last comment was by LukeBird
on 14th July 2009