Tweet
What? No SWF appetite left for preferred share issues from Wall Street banks? Imagine that...:rolleyes:
Porsche set to give Volkswagen stake to Qatar: sources
Wed Jun 24, 2009 3:48pm EDT
FRANKFURT (Reuters) - Porsche is advancing toward a deal with Qatar to give the Gulf state a shareholding in Volkswagen, a compromise that will clear the way for the car makers to merge, according to people involved in the talks.
Porsche racked up 9 billion euros ($12.7 billion) of debt trying to swallow its much bigger rival Volkswagen before the financial crisis turned the tables and threatened to unravel the deal.
The luxury carmaker then entered talks with Qatar about selling a stake in Porsche but -- with Volkswagen now set to dominate the marriage to its debt-hobbled partner -- Qatar's interest has shifted to Volkswagen...
...A planned capital increase to open its doors to Qatar's sovereign wealth fund, the Qatar Investment Authority, had been expected to raise more than 4 billion euros.
"Selling the Porsche options (in VW) would solve the financing problems (of Porsche)," said a third source. "They (Qatar) would be the third-biggest shareholder in Volkswagen alongside the majority shareholder Porsche...
...A deal with Qatar could put the Gulf state on equal footing with Volkswagen's second biggest shareholder, the state of Lower Saxony...
Wed Jun 24, 2009 3:48pm EDT
FRANKFURT (Reuters) - Porsche is advancing toward a deal with Qatar to give the Gulf state a shareholding in Volkswagen, a compromise that will clear the way for the car makers to merge, according to people involved in the talks.
Porsche racked up 9 billion euros ($12.7 billion) of debt trying to swallow its much bigger rival Volkswagen before the financial crisis turned the tables and threatened to unravel the deal.
The luxury carmaker then entered talks with Qatar about selling a stake in Porsche but -- with Volkswagen now set to dominate the marriage to its debt-hobbled partner -- Qatar's interest has shifted to Volkswagen...
...A planned capital increase to open its doors to Qatar's sovereign wealth fund, the Qatar Investment Authority, had been expected to raise more than 4 billion euros.
"Selling the Porsche options (in VW) would solve the financing problems (of Porsche)," said a third source. "They (Qatar) would be the third-biggest shareholder in Volkswagen alongside the majority shareholder Porsche...
...A deal with Qatar could put the Gulf state on equal footing with Volkswagen's second biggest shareholder, the state of Lower Saxony...
Comment