Report: Vw to buy Porsche AG for €8 billion

Article by Christian Andrei, on August 25, 2010

In an ironic twist of events that has Volkswagen closer to a deal to buy Porsche-AG instead of the other way around, German newspaper Der Spiegel reports that the agreement would allow for Porsche to be bought for about €8 billion ($11.28 billion).

On July 23, the Porsche supervisory board will be meeting to decide whether to finalize a deal that would give 49.9% of Porsche to Volkswagen, while still allowing for the possibility of a full acquisition.

If the deal pushes through, Porsche will be 10th car brand owned by the Volkswagen Group. Other brands include Audi, Bentley, Bugatti, Lamborghini, Seat, Scania. Skoda, VW and VW Commercial Vehicles.

Porsche AG's parent company incurred an alleged €10 billion debt due to its move to take over VW that failed because of the global economic crisis. By selling Porsche AG, the parent company will be able to pay some of this debt.

It is believed that this crisis at Porsche would lead to a restructuring of its top officials. According to Der Spiegel, CEO Wendelin Wiedeking is constructing a €100 million golden parachute so he can bail out of the firm.

Production head Michael Macht would replace him. This development further complicates the relationship between cousins, Ferdinand Piech and Wolfgang Porsche, who are said to be bitter rivals.

Piech is the chairman of VW and part-owner of Porsche, while Wolfgang Porsche is the chairman of Porsche SE and a member of the VW supervisory board.

Topics: vw, porsche, takeover

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nearly a decade after Opel and sister brand Vauxhall introduced the Insignia large family car, these companies are now getting ready to unveil the second generation of this offering from...
by - December 7, 2016
After we caught a glimpse of the revamped Amarok, VW Australia once again wants to give its ute a sinister look inspired by the Mad Max movie franchise. The “Korama”...
by - December 7, 2016
Customers in the European market are known for leaning towards style and with this in mind, Nissan has revealed the special LEAF Black Edition. While the production run of this...
by - December 7, 2016
When Volkswagen unveiled the VW Atlas, it declared that this SUV is being developed for the United States and is set to arrive as a 2018 model. It also unveiled...
by - December 7, 2016
Did you miss the opportunity to get a brand new Dodge Viper? Well, here’s something you don’t want to miss. Dodge has announced a “final call” for orders for its...
by - December 6, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries