Qatar Closing On 25% Porsche Stake

2009 Porsche Boxter

Porsche + Qatar = Love

By Michael Gauthier
June 18, 2009 9:30 PM
Filed Under: Corporate/Financial, German, Porsche

Porsche's financial nightmare may soon be over, as the country of Qatar is in talks to take a 25% stake in the troubled automaker.

An agreement between Porsche and the Qatar government prevents either party from disclosing details, but Qatar's prime minister, Sheikh Hamad bin Jassem al-Thani, said negotiations are continuing.

As we have previously reported, Porsche has accumulated a massive 9 billion euro ($12.5 billion) debt in their failed attempt to takeover Volkswagen. With the takeover off the table, Porsche has attempted to merge with VW but their debt has proved to be a major sticking point.

Despite the would-be marriage, Volkswagen has distanced themselves from the issue by stating they stand "behind (Porsche's) talks with an investor" and "Qatar ... will only be dealt with by Porsche."

Source: Autonews

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Tags: Porsche AG, VW, Volkswagen

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Comments

Renegade

June 18, 2009 10:00 PM

Well, at least I know that I won't buy a Porsche this century, wonder if gold and chrome paint will be a optional form now at Porsche.

car-o-bar

June 18, 2009 10:14 PM

Another bailout, only this time by a foreign government. Oil Money. Your money coming back as investment to bail you out. Ironical.

Razz

June 18, 2009 10:21 PM

VW is crazy ? Why they don't help Porsche ?? It's a crazy world, Porsche wanted to help VW buying its shares to not be bought by some chinese or something and now, the step brother that is VW turn's its back to Porsche. Shame of you VW !!

Edited by user on June 18, 2009 at 10:23 PM

scratchy996

June 18, 2009 10:43 PM

Porsche tried a hostile takeover.

joshg_5

June 19, 2009 1:16 AM

Yeah, Porsche didn't exactly try to "help" VW... lol

Was a pretty aggressive move really

MutantSushi

June 19, 2009 9:29 AM

What is crazy?

Porsche is overloaded with debt and Qatar will step in as a non-controlling investor to turn the books into black again?

And by all signs the VW-Porsche merger will proceed, VW just wasn't interested in seriously denting it's cash flow:debt picture... With extra investment by Qatar, it's all good and the merger will proceed smoothly. So what? Money's money.

shaahinmt

June 19, 2009 1:44 AM

im very supportive about this news of Qatar buy shares in Porsche, c'z then at the Porsche dealership they would give u free Arabian coffee, carpets would be nice, and the little horse in the middle of the badge will be replace by a camel, and the three knifes will be replaced with an Arabic double edged sword. Im seriously looking forward to it actually.

Schizo0223

June 19, 2009 2:11 AM

You are trying to be funny???

NauAudiS4

June 19, 2009 5:39 AM

You must have forgotten that Qatar is one of the most forward looking arabic countries. They have established many new world-renowned technical institutes within their country, and plan on being a technological tour-de-force. They are currently building several new cities, one which will be a 'green-city,' although it is still to be seen how 'green' it will be after all is said and done. Also lets not forget that most of their money has been made on natural gas and not oil. Qatar is considered "the Saudi Arabia of natural gas," therefore I do not find it ironic that "their oil money" is investing in Porsche. I personally think that this investment will help Porsche in the long run, giving them access to billions of dollars for R&D and racing which allows Porsche to make more money and better cars.

benzboy

June 19, 2009 7:13 AM

why doesnt Porsche ask Jerry Seinfeld for a loan LOL!!

Edited by user on June 19, 2009 at 7:14 AM

scratchy996

June 19, 2009 12:20 PM

true :)

Dr.Mabuse

June 19, 2009 10:18 AM

This is what happens when you run a company like a hedge fund. It is perfectly understandable why VW didn't want part of it as Porsche refused to open it's books to closer scrutiny.

Wiedeking and his CFO should be ashamed. Porsche was profitable "enough" 10 years ago, prior to the Cayenne, prior to the Panamera and prior to discontinuing top-level motorsport. Yet all we heard was that these "vehicles" were necessary for Porsche to remain independent. So much for that!

They make some great cars for sure, but this is *despite* meglomaniacs running the show. Wiedeking should retire to his farm where he can induldge his real passion - driving around in tractors, not meddling with one of the great sports car companies in the world.

mnovakowski

June 19, 2009 1:17 PM

Congrats to Porsche management for turning the most profitable car company in the world into a finacial disaster. Qatar is an interesting country as it supports both the US and allegedly Al Qaeda. No matter who made this investment though it would tarnish the Porsche image very badly (unless it was a German company).

alessandro

June 19, 2009 1:29 PM

So 25% of Porsche's production wiil be camels

Renegade

June 19, 2009 2:26 PM

Haha, good one, gold plated camels.

norther

June 19, 2009 10:39 PM

hope porsche will never take over vw. never, evvvveerrrr!!!!!

scratchy996

June 20, 2009 12:15 PM

they will merge.

Sultan91

June 20, 2009 2:49 PM

i think being racist towards qatar is NOT the issue of this topic, so please for those intending to trash talk about camels, oil money etc keep it to yourselves, as this kind of manner means that you cant afford a porsche and your not intrested (UAE)

Bojassem

August 3, 2009 9:11 AM

well said.

ai88

June 21, 2009 5:47 AM

haha porsche got all greedy with their success and wanted to take over vag to eliminate possible competition - now all they have is debt and ugly cars.

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