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.