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article imagePorsche, Volkswagen near deal

By Bob Ewing     Jul 18, 2009 in Technology
Sources are not being revealed but media reports are saying the struggle over control of Porsche appears to be coming to an end.
A report says Volkswagen is planning a complete takeover of beleaguered sports car maker Porsche in a series of two transactions.
Initially, Volkswagen AG would get 49.9 per cent of Porsche AG and later take the remaining shares.
Porsche Automobil Holding SE would receive approximately euro8 billion from Volkswagen. This is a critical amount because the company is trying to alleviate the debt it ran up as it increased its stake in Volkswagen to more than 51 percent, making it the biggest shareholder in Europe's biggest automaker by sales.
Neither Porsche nor Volkswagen has released any details of their talks or the deal itself; however, someone familiar with the talks, who spoke on condition of anonymity, confirmed that the deal as described was likely.
According to the report, the Pieches and Porsches, the families that own Porsche would control 50 per cent of the new VW-Porsche group, the state of Lower Saxony would have a share of 20 per cent. The Middle Eastern nation of Qatar would take a stake of between 14.9 and 19.9 per cent.- would control 50 per cent of the new VW-Porsche group.
In addition, the deal is now backed by Porsche supervisory board chairman Wolfgang Porsche, who had fought to maintain Porsche's independence from VW.
It has also been reported Porsche's current CEO, Wendelin Wiedeking, would step down and that the families had agreed to replace him with Porsche production chief Michael Macht.
Wolfgang Porsche denied the report and rebuffed the "speculation" that Macht would succeed Wiedeking. Wiedeking will remain head of Porsche AG and Porsche Holding. Deputy chairman of the board and works council chief Uwe Hück also defended Wiedeking.
"Wiedeking is chairman of the board and he will continue to be so," he said.
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