Tagged porsche’s stake in vw

Porsche Said to Be Examining Sale of VW Stock Options

By Chris Reiter

(Bloomberg) — Porsche SE, strained by 9 billion euros ($12.5 billion) in net debt, may sell its options on Volkswagen AG shares to an investor as the sports-car maker seeks to combine with VW, a person familiar with the plan said.

Porsche is examining a sale of the call options that can be converted into about 20 percent of VW as part of its discussions with investors, said the person, who asked not to be identified because the negotiations are private. The move may help Stuttgart, Germany-based Porsche raise money before a planned integration with Europe’s largest carmaker, the person said.

Porsche may be unable to exercise the options, which have helped the carmaker’s profits exceed sales, as it struggles to raise fresh financing, analysts including UniCredit SpA’s Georg Stuerzer have said. Germany’s government said today it needs more time to consider Porsche’s request for a 1.75 billion-euro loan from KfW Group, the country’s state-owned development bank.

“It’s not clear that Porsche would achieve much de- leveraging in a sale,” said Philippe Houchois, an analyst at UBS AG in London. “The options might be worth nothing.”

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