Volkswagen board approves merger with Porsche

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Filed under: Porsche, Volkswagen, Earnings/Financials
Hunting 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.


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