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Porsche Financial Update
July 15, 2009
The financial news about Porsche has turned into a soap opera. After being the most profitable automaker on the planet and almost swallowing up the much-larger Volkswagen, Porsche is now trying to figure out how to survive and manage its huge debt.
Word comes now that the rumored deal with the Sheik of Qatar is almost a done deal. The rumored deal will see the Sheik getting 20 percent of Porsche Holding SE for €7b with an option to buy 20 percent of Volkswagen. This would have the effect of nearly wiping out Porsche’s debt, but prevent Porsche from getting any more of Volkswagen.
To add to the rumors, Porsche is supposedly having a high-level meeting on July 23rd to decide whether to approve this deal, or to possible sell 49 percent of Porsche AG to Volkswagen. Apparently, VW is offering “substantially more than €4b” for 49.9 percent of Porsche AG, and the overall deal would bring another €1b more to Porsche than the Sheik’s deal for Porsche SE.
Confused? Well, hang in there, we should know more after the 23rd of July…
[source: The Truth About Cars]
Posted in Company News
