Porsche and VW Resume Merger Talks

Negotiations could be wrapped up by early June

By Michael Gauthier
May 20, 2009 1:33 PM
Filed Under: Corporate/Financial, German, Industry, Porsche, Volkswagen

Volkswagen's love/hate relationship with Porsche is once again firmly in the love department thanks to the resumption of merger negotiations.

As we reported a few days ago, merger talks broke down when VW declared Porsche lacked a legitimate plan for integrating the two companies. Apparently there was a change of heart and both companies issued identical press releases stating they "...will advance efforts toward this goal (the merger) in a constructive way and in mutual agreement with all the parties concerned."

Despite this minor victory, the merger still faces several hurdles including Porsche's massive 9 billion euro ($12.27 billion USD) debt and an angry Volkswagen labor union which wants detailed plans for the post-merger strategy.

Both companies are hoping to get everything wrapped up by early June, but in the meantime Porsche is attempting to refinance its debt and sooth anxious Volkswagen shareholders.

 

Source: Autonews (sub req)
Tags: VW

Comments

lucifa
May 20, 2009 2:00 PM
GM sneer at such petty monetary problems...

Michael
May 20, 2009 2:36 PM
In fact the merger was already done: Porsche has 9 billion euros debt but 51% of the VW shares, while VW has 10.7 billion euros in cash while it is a minority shareholder. All they have to do is to draft the papers and sign them.

BENZian
May 20, 2009 2:47 PM
...you're wrong in this case. The state of lower Saxony has a 20.1% stake in VW and has a veto... This was already covered here in WCF a long time ago...if you're interested this is the link to the WCF article http://www.worldcarfans.com/9090105.015/official-porsche-increase-volkswagen-stake-to-over-50


Edited by user on May 20, 2009 at 2:53 PM
Aesthetics
May 21, 2009 5:17 AM
the most interesting bit is if porsche get holds of VW, will it take Audi with it because all i am reading is VW and not VAG, Vaolkswagen Audi Group

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