VW CEO Martin Winterkor sees 30% chance Porsche merger will fail

Article by Christian A., on November 1, 2010

As potential legal and tax liabilities have increased in the last few months, VW CEO Martin Winterkorn estimates that there is a 30% chance that there won’t be a Porsche-VW merger under the leadership of VW.

This indicates that there is a probability that investors who are holding preferred shares in Porsche SE will not be able to swap their stock for equity in Volkswagen.

In an interview with Automobilwoche, a sister publication of Automotive News Europe, Winterkorn said that its lawyers are closely examining the risks.

Volkswagen has a put-call option in place that permits it to obtain the remaining 50.1% of Porsche SE's sports cars activities for a strike price of 3.9 billion euros ($5.41 billion) independent of any merger. However, there are tax risks involved in this purchase if the option is exercised before the end of 2014.

Earlier this month, Winterkorn and VW finance chief Hans Dieter Poetsch said that legal and tax issues might delay the deal further than the end of 2011, when the merger contract is set to expire.

What put Porsche in this dilemma was when it attempted a takeover of Volkswagen, which almost bankrupted it since it could no longer afford to support the elaborate structure of VW derivative positions used to build its stake. [via autonews - sub. required]

Topics: vw, ceo, porsche

If you liked the article, share on:

Comments

Recommended

Bimmerpost has posted several cool pictures of the new BMW G30 540i and the new G31 generation BMW 5-Series Touring, with both wearing the brilliant Rhodonite Silver Individual colour. The...
by - October 23, 2017
A few years ago, Lotus tried to take on Porsche. They had a five-car plan to go against competitors like Ferrari and Aston Martin. Though it did not go well,...
by - October 23, 2017
To keep the Nissan Maxima interesting, the Japanese automaker gives the 2018 model year a number of small tweaks. Some of these include standard Android Auto, which is a new...
by - October 23, 2017
It looks as if Chevrolet has everything planned out in terms of production. Firstly, they have plans of introducing the Corvette ZR1 in a few months, which will then be...
by - October 23, 2017
While Tesla Motors continues to struggle with regards to the assembly of its much awaited Tesla Model 3, investment firm Oppenheimer & Co. is confident that its previous production estimates...
by - October 22, 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