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

Article by Christian Andrei, 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

Login or Create new account to add a comment!

Recommended

For those who love driving, future autonomous cars should be like the Toyota Concept-i that is drawing in a multitude of visitors at the 2017 Consumer Electronics Show in Las...
by - January 15, 2017
Things are looking good at Rolls-Royce Motor Cars as the British luxury carmaker impressed by posting a six-percent jump in deliveries in 2016. Rolls-Royce’s 2016 deliveries of 4,011 units in...
by - January 15, 2017
British luxury sports car maker Jaguar is introducing a bevy of subtle updates to the 2018 Jaguar F-Type Facelift. However, these updates are so subtle that they are barely noticeable...
by - January 14, 2017
As far as Automobili Lamborghini S.p.A. is concerned, 2016 was a very fruitful year. This is all due to the fact that the luxury sports carmaker has delivered the most...
by - January 14, 2017
Earlier reports revealed that Infiniti was at the point of considering an electric car for the future. Prior to this, the company has in fact unveiled two concepts already--- the...
by - January 13, 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