Vw may delay Porsche merger until lawsuits and tax talks issues get solved

Article by Christian A., on October 21, 2010

CEO Martin Winterkorn said that Volkswagen AG would need to delay a merger with Porsche SE that’s expected to be completed next year. VW said that risks from US lawsuits and German tax issues should be resolved first.

Winterkorn, who is also CEO of Porsche's holding company, said that the legal proceedings “may drag on for some time to come until a final decision is reached.”

As a result, the planned merger might be delayed as the company is still facing a tax-related hurdle and several legal obstacles.

It was in August 2009 that VW agreed to merging with Porsche in August 2009 after Porsche’s debt tripled to over 10 billion euros ($14 billion) following a failed bid to buy VW by securing stock through options transactions.

Since that time, VW has bought 49.9% of Porsche's operating unit for 3.9 billion euros, setting the stage for a merger in 2011.

The suit against Porsche was designed by US-based short sellers of VW stock who assert that the sports-car maker secretly cornered the market in VW shares and these later caused them over $1 billion in losses.

Elliott Associates LP, Glenhill Capital LP, Glenview Capital Partners LP and other short sellers, filed the suit in the Manhattan federal court. In January, the court will decide in Germany.

Topics: vw, porsche

If you liked the article, share on:

Comments

Recommended

Nissan revealed that the new 2017 Rogue Sport crossover will be priced in the U.S. market at $21,420. Specifically, this is for the front-wheel drive version of the Rogue Sport...
by - April 26, 2017
Remember the E30 BMW M3? Yes, the one from 1990. If you remember it right, it was also the company’s most iconic car and probably one of the best BMW...
by - April 26, 2017
Ferrari is cooking up something interesting for us. The last time they released the 488 GTB was two years ago, followed by a 488 Spider and several versions of it....
by - April 26, 2017
After launching the latest version of the BMW M550i xDrive, the German carmaker is now introducing its diesel counterpart -- the new M550d xDrive (G30/G31). Available either as a sedan...
by - April 26, 2017
A lot of news has been going around about the 2018 Dodge Challenger SRT Demon lately, and people are arguing whether the 840 horsepower vehicle by Fiat Chrysler should be...
by - April 26, 2017
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