Jul 13, 2009, 14:48 GMT
Stuttgart - Shares in German sports-car maker Porsche jumped 7 per cent Monday after reports that the Qatar Investment Authority (QIA) had bid for a key stake in the business.
A buy-in might alter the balance in a controversial planned merger between Porsche and volume-car maker Volkswagen, making Porsche Holding SE rather than Volkswagen the dominant partner in the marriage.
However Christian Wulff, premier of the German state of Lower Saxony who is a key advocate for the Volkswagen camp, dismissed the report, saying he was expecting a 'good solution' in the next few days.
Porsche rejected his remarks. A company spokesman said Wulff was not privy to the negotiations with QIA and charged Wulff was trying to 'undermine' those talks.
'Wulff cannot assess whether an offer from Qatar is on the table because he is not involved in the negotiations,' the spokesman in Stuttgart said.
The spokesman said Porsche's family shareholders had not yet decided whether to accept the QIA bid, said by TV reports to involve a cash injection of 7 billion euros (10 billion dollars). He declined to detail the bid.
'The emirate of Qatar is just as interested as Porsche in establishing an integrated automotive group,' he said.
He said the supervisory board of Porsche SE would meet July 23, which was the earliest any deal was possible.
Porsche Holding SE, which owns the Porsche factories and 51 per cent of Volkswagen, is wholly controlled by the Porsche and Piech families but is saddled by huge debt.
Non-voting Porsche preference shares traded in Frankfurt at 45.40 euros, up 7 per cent, as the war of words continued. So far Volkswagen has been seen as the likely dominant partner in the planned union.
The alternative to a buy-in by Qatar would be for Volkswagen to buy the Porsche factories and brand so as to free Porsche SE of 9 billion euros in debt. Reports said Volkswagen might now have to raise its bid.
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jimwhenry1507@yahoo.comJul 15th, 2009 - 11:13:11
You can buy or trade in both domestic and foreign vehicles so not just the US made cars. Jim H Blogger www.cashforclunkersfacts.info
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