Sign in to follow this  
Followers 0

AutoBlog: Volkswagen board approves merger with Porsche

1 post in this topic

Filed under: Porsche, Volkswagen, Earnings/Financials

porsche-vw-emblems-getty-250-main.jpgHunting for big game can be a tricky business. The saga of Volkswagen and Porsche appears as though it may soon draw to a close with the hunter being swallowed by its prey. At a special meeting of the Volkswagen supervisory board on Thursday, an agreement was approved that will ultimately lead to assimilation for Porsche.

Currently, Porsche SE holds a bit over 50 percent of Volkswagen's common shares along with options for another 20 percent. Porsche will start off by negotiating to sell those options to the Emirate of Qatar for an undisclosed sum. Once that deal is done, Volkswagen will buy 42 percent of Porsche AG (the car making business) before the end of this year. Volkswagen will pay €3.3 billion for that stake.

VW will pay another €3.55 billion for Porsche Holding Salzburg, a trading company owned by the Porsche and Piech families. Ultimately, by the end of 2011 as Porsche SE reduces its debt load with all of this new cash, Volkswagen and Porsche will merge into a single company.

That is if all goes according to plan. What could possibly go wrong? Press release from VW after the jump.

[source: Volkswagen]

Continue reading Volkswagen board approves merger with Porsche

Volkswagen board approves merger with Porsche originally appeared on Autoblog on Fri, 14 Aug 2009 10:28:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments


autoblog?i=qBNKo4XN4XQ:LhtRl7q9Kzo:wF9xT autoblog?i=qBNKo4XN4XQ:LhtRl7q9Kzo:V_sGL

View the full article

Share this post

Link to post
Share on other sites

Your content will need to be approved by a moderator

You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   You have pasted content with formatting.   Remove formatting

×   Your link has been automatically embedded.   Display as a link instead

Sign in to follow this  
Followers 0

  • Who's Online (See full list)

    There are no registered users currently online

  • Who's Chatting

    There are no users currently in the chat room