Porsche offer
July 12, 2009
According to reports in German media, the Qatar Investment Authority (QIA) would take a 20-25 percent stake of Porsche for 7 billion euros (9.8 billion dollars) and would also get access to Volkswagen share options held by Porsche.
The offer comes as a relief to Porsche chief executive Wendelin Wiedeking who has been locked in a power struggle with the head of VW, Ferdinand Piech.
The deal would enable Porsche to get out from under a debt of nine billion euros that it accrued while attempting to take over Volkswagen in 2008. The global economic downturn derailed Porsche's efforts. Porsche currently has a 51 percent share of Volkswagen.
VW had made a counter offer of three to four billion euros in June, but that offer was rejected by Porsche. According to reports, VW recently upped its offer to considerably more than four billion euros.
Porsche has confirmed that it will hold an extraordinary meeting of its supervisory board on July 23 where it will decide whether to accept the offer from QIA.
If successful QIA would also get access to shares that would enable it to control about 20 percent of Volkswagen at a very attractive price.
The German state of Lower Saxony, where VW has its headquarters, controls just over 20 percent of the company.
av/dpa/AP/AFP
Editor: Nigel Tandy