VW’s takeover of Porsche in danger due to tax liabilities
By Andrew C., 26 Aug, 2010. 0 Comments
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The planned takeover of Porsche would be burdened by tax liabilities amounting to 3 billion Euros , according to German newspaper, the Sueddeutsche Zeitung. Porsche sources have been quoted as saying that the taxes could be a dealbreaker. There are also reports that Ferdinand Piech is pressuring the Porsche family to sell a majority of its shares to VW and to terminate Wendelin Wiedeking.
The move is expected to cost around €92 million in severance pay. Porsche and Volkswagen, whose shares dropped 8% and 9% respectively, have declined to comment on the report.
This Thursday, both companies are set to have board meetings to decide the fate of Porsche. VW reportedly wants to buy a 49.9% stake in Porsche, with the option to buy the rest at a later date. It was estimated that Porsche has incurred debts totaling 14 billion Euros due to its previous attempt to buy VW that failed to prosper due to the global crisis.
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