Volkswagen merger with Porsche delayed due to legal obstacles

Article by Christian A., on September 10, 2011

Volkswagen AG will postpone a move to merge with Porsche Automobil Holding SE to a date after 2011 as it attempts to resolve its legal issues and as it finds other methods to create an integrated auto group. In 2009, Porsche and Volkswagen had an agreement to finalize a merger deal by the end of 2011.

But last February, it was announced that the merger is being delayed due to investor lawsuits and a criminal probe of Porsche's former CEO and its finance head. Last Thursday, Volkswagen released a statement that after talks with Porsche, it has come to the conclusion that the planned merger with Porsche SE can’t be executed in the time frame cited in the comprehensive agreement.

Porsche also released a separate statement, explaining that the two companies can’t agree on the valuation of Porsche SE necessary for computing the exchange ratio.

In addition, Volkswagen said that in the next several weeks, its board of management will examine if there are other possible courses of action to attain the target to making an integrated automotive group with Porsche. VW said that the outcome of this study will be shown to the supervisory board before the year ends.

VW added that the primary reasons for uncertainty are the current legal actions that Porsche SE faces in Germany and the U.S. for supposed market manipulation.

The automaker said that from its perspective, the ongoing legal obstacles make it impossible to gauge the economic risks of a merger and hence, to perform the valuation of Porsche SE needed to find the exchange ratio. Last Thursday, Porsche SE said that it believes the allegations cited in the probe and the damages claims brought in Germany don’t have any merit.

If you liked the article, share on:

Topics: vw, porsche

Comments

Recommended

November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
As BMW has already revealed, the next generation of the BMW M5 (F90) is a four-wheel drive high-performance sedan with overwhelming power output and torque at its disposal. However, it...
by - November 17, 2017
McLaren unveiled a one-off Gold - on - Black 720S at the 2017 Dubai Motor Show which will be on display throughout the entire stretch of this week’s event. The...
by - November 16, 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