Tagged porsche and vw merger

Piech Caps 20-Year VW Turnaround With Porsche Takeover

When Ferdinand Piech took charge of Volkswagen AG (VOW) 20 years ago, the carmaker was losing almost 1 billion euros ($1.24 billion) with its sales tied to the fortunes of the European economy.

Yesterday, the 75-year-old VW chairman capped a spurt of dealmaking with a 4.46-billion euro agreement to buy the rest of Porsche SE’s automaking business, a transaction that will extend the German company’s lead as the world’s most profitable automaker. VW generated a record 11.3 billion euros in operating profit in 2011. Read more

VW to Pay $5.6 Billion for Rest of Porsche

Volkswagen AG (VOW) agreed to buy the 50.1 percent stake in Porsche SE’s automotive business that it doesn’t already own for 4.46 billion euros ($5.6 billion), ending a seven-year takeover saga that divided two of the most powerful families in Germany.

VW was able to proceed with the transaction two years earlier than planned after reaching an agreement with German tax authorities, it said late yesterday. The cash deal is based on an equity value of 3.88 billion euros and also includes what the Porsche holding company would have received in dividend payments and half of the forecast synergies from the combination. Read more

Porsche and Volkswagen see encouraging operating business

Structural changes impact Porsche SE group’s results

Stuttgart. Porsche Automobil Holding SE, Stuttgart, is able to report that its holdings’ operations continued to develop favorably throughout the first nine months of fiscal 2009/10, which ends on 31 July 2010. In this period, Porsche Zwischenholding GmbH group, in which Porsche SE holds a 50.1 percent share and which is primarily made up of Porsche AG and its subsidiaries, achieved an operating result of 0.6 billion euro. The group continues to report a two-digit return on sales. Revenue increased by 11.8 percent in relation to the comparative period of the prior year to 5.2 billion euro. Read more

Tables Turn in Porsche’s Pursuit of VW

By CARTER DOUGHERTY
Published: June 19, 2009 NY Times

FRANKFURT — When Wolfgang Porsche learned that his family’s sports car company would need an emergency cash infusion from its giant rival Volkswagen, he “went absolutely white.”

“It was as though he’d heard someone died,” said one person briefed on the secret meeting between executives of the two companies.

The meeting, at the offices of the governor of Lower Saxony state, where Volkswagen is based, effectively ended the company’s audacious bid for Europe’s largest automaker. It also was the beginning of the end of Porsche’s cherished independence.

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Porsche woos Qatar investor

Editor: Chuck Penfold

German luxury sportscar maker Porsche says it’s negotiating with the Gulf state of Qatar as the exclusive candidate to buy a stake in the heavily-indebted company.

A Porsche spokesman in Stuttgart confirmed the news amid speculation of the possible involvement of a Middle Eastern investor. Details are still sketchy, but the Financial Times newspaper quoted sources close to the talks as reporting that the Qatar Investment Authority was interested in a stake of up to 25 percent in Porsche’s holding company.

Analysts say such an investment would considerably strengthen Porsche’s bargaining power in troubled merger talks with Volkswagen.

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