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Porsche rejects VW stake bid
Source: Agencies |
June 30, 2009, Tuesday
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Print Edition
PORSCHE has rejected Volkswagen AG's bid to take a 49 percent stake in the sports car maker, a company spokesman said yesterday.
Porsche Automobil Holding SE spokesman Albrecht Bamler said the offer by VW "is not a viable option."
According to Bamler, Porsche board chairman Wolfgang Porsche received the offer in a letter by courier last week. But the company's CEO Wendelin Wiedeking and management board were not informed. "Without the management board, nothing goes here," Bamler said.
Porsche holds a roughly 51 percent stake in VW, but ran up hefty debts in accumulating that holding and is now seeking a merger with the larger company. Exactly how that is to happen remains unclear.
German weekly Der Spiegel reported the VW offer was worth 3 billion euros to 4 billion euros, which would have helped Porsche pay off it sdebts, racked up in its attempt to take over VW.
Bamler said, however, that for VW to take a stake in Porsche, the Wolfsburg-based auto maker would have to take out credit worth 10.75 billion euros (US$15.15 billion).
Porsche, based in Stuttgart, confirmed earlier this month it has been holding discussions with a Qatar state investment fund, the Qatar Investment Authority, on a possible investment.
VW shares dropped 10.6 percent on the news to 237.91 euros in afternoon trading in Frankfurt yesterday.
Porsche shares nudged up nearly half a percent to 45.92 euros in Frankfurt.
Porsche Automobil Holding SE spokesman Albrecht Bamler said the offer by VW "is not a viable option."
According to Bamler, Porsche board chairman Wolfgang Porsche received the offer in a letter by courier last week. But the company's CEO Wendelin Wiedeking and management board were not informed. "Without the management board, nothing goes here," Bamler said.
Porsche holds a roughly 51 percent stake in VW, but ran up hefty debts in accumulating that holding and is now seeking a merger with the larger company. Exactly how that is to happen remains unclear.
German weekly Der Spiegel reported the VW offer was worth 3 billion euros to 4 billion euros, which would have helped Porsche pay off it sdebts, racked up in its attempt to take over VW.
Bamler said, however, that for VW to take a stake in Porsche, the Wolfsburg-based auto maker would have to take out credit worth 10.75 billion euros (US$15.15 billion).
Porsche, based in Stuttgart, confirmed earlier this month it has been holding discussions with a Qatar state investment fund, the Qatar Investment Authority, on a possible investment.
VW shares dropped 10.6 percent on the news to 237.91 euros in afternoon trading in Frankfurt yesterday.
Porsche shares nudged up nearly half a percent to 45.92 euros in Frankfurt.
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