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.
By Dietmar Hawranek
Luxury carmaker Porsche came very close to bankruptcy in March. Only a dramatic rescue operation saved the company, but it’s still on the skids. Over the coming weeks, the sports car manufacturer — which is up to its hubcaps in debt — could find itself in an increasingly difficult financial situation if it doesn’t swiftly merge with Volkswagen.
In fairytales, a fairy occasionally appears when the going gets really rough. The hero makes three wishes, extricates himself from various predicaments, and can look forward to eternal happiness.
In the harrowing tale currently embroiling Porsche, the good fairy is played by a sheik. Porsche managers say the company is conducting promising negotiations with the emirate of Qatar.