Open

Coming up

Don't miss

Replay


LATEST SHOWS

REPORTERS

Halal tourism on the rise

Read more

ENCORE!

Tunisia's Carthage International Festival turns 50

Read more

FRANCE IN FOCUS

WWI Centenary: the battle for Verdun

Read more

THE BUSINESS INTERVIEW

When big companies want to do good

Read more

FOCUS

Many Turks angry over Syrian refugee situation

Read more

ENCORE!

Shakespeare’s 450th Birthday : The Best of the Bard

Read more

BUSINESS DAILY

The Tour de France, a PR machine

Read more

IN THE PAPERS

Coverage of the third plane crash in one week - from France, Algeria and Burkina Faso

Read more

IN THE PAPERS

Coverage of the plane crash that took 116 lives - almost half of them French

Read more

  • Live: ‘No survivors’ from Algerian plane crash, says Hollande

    Read more

  • In pictures: Debris and devastation at Air Algérie Flight AH5017 crash scene

    Read more

  • Paris bans new Gaza protest scheduled for Saturday

    Read more

  • Lithuania’s Navardauskas wins 19th stage of Tour de France

    Read more

  • French families grieve for Algerian plane crash victims

    Read more

  • Protest against Gaza offensive turns deadly in West Bank

    Read more

  • LA Times wipes France off the map in air crash infographic

    Read more

  • Tour de France fans bring the ambience to the Pyrenees

    Read more

  • Halal tourism on the rise

    Read more

  • French lawyer files complaint against Israel at ICC

    Read more

  • Ukraine names acting PM after Yatseniuk's shock resignation

    Read more

  • BNP to pay $80 million for defrauding Dept of Agriculture

    Read more

  • Deadly strike on UN shelter in Gaza Strip

    Read more

  • Wreckage of Algeria plane found in Mali

    Read more

  • Pope meets Christian woman sentenced to death in Sudan

    Read more

Business

Porsche management get go-ahead for Qatar deal

Video by Nicholas RUSHWORTH

Text by NEWS WIRES

Latest update : 2009-07-23

Porsche has opened the way to Gulf state Qatar taking a stake in the German luxury car maker prior to creation of an integrated group with Volkswagen.

AFP - German luxury car maker Porsche opened the way Thursday to the Gulf state of Qatar taking a stake in it prior to creation of an integrated group with Volkswagen.
  
"The supervisory committee of Porsche at an extraordinary meeting unanimously gave power to the management to seal the discussions with Qatar Holding LLC on a raising of Porsche's capital" said a very brief communique issued early Thursday.
  
A little earlier Porsche had announced that it would seek a boost in capital of at least five billion euros, without however saying who would take part.
  
The decision was taken at a meeting of the supervisory committee that started Wednesday in Weissach near Stuttgart in southwestern Germany, one day ahead of schedule, in a bid to seal a historic alliance with German automaker Volkswagen.
  
"The basis for the creation of an integrated group between Porsche SE and Volkswagen AG has thus been laid," the builder of the 911 sports car said in a brief statement.
  
The announcements are in line with the plans prepared by Porsche boss Wendelin Wiedeking for the company, which owns about 51 percent of Volkswagen, to pay off, at least partially, its roughly 10 billion euros (14.2 billion dollars) in debt.
  
Wiedeking wanted to maintain the independence of his group, which could however be compromised by the creation of an integrated group with VW. Recent press reports have said the Porsche boss was on his way out.
  
The 12 members of the supervisory committee, who were originally to have met Thursday afternoon, were to examine two competing offers to ensure the future of Porsche.
  
The first offer was designed by the Porsche management and its contested boss Wendelin Wiedeking. That proposal calls for the Gulf state of Qatar to take a major stake in Porsche and to buy VW stock options owned by Porsche.
  
The second offer came from VW, which would buy Porsche's core automaking activities, making it VW's 10th brand, with Qatar possibly investing in the integrated company.
  
A meeting of VW's surveillance committee is scheduled for 10 GMT Thursday in Stuttgart.
  
The two groups have been closely linked since January when Porsche acquired almost 51 percent of the shares in VW, the biggest auto maker in Europe.
  
Porsche, burdened with debt, abandoned in May a plan to take full control of VW and its hefty reserves of liquidity, and must now find other sources of financing.
  
The German state of Lower Saxony, which owns 20 percent of VW and holds a veto over its strategic decisions, stood between Porsche and VW's cash.
  

Date created : 2009-07-23

COMMENT(S)