[Bols]

Qatar ready to buy 25 per cent stake in Porsche: reports



BERLIN: Qatar is ready to acquire at least a 25-percent stake in German luxury sportscar maker Porsche, heavily in debt after increasing its shares
in Volkswagen, German media reported.

"The emirate of Qatar and its advisor Credit Suisse on June 8 finished the preliminary examination of Porsche's books," the German news weekly Der Spiegel said in an article to appear in Monday's edition.

Ferdinand Piech, a co-owner of Porsche and former Volkswagen boss, does not have enough backing to turn down Qatar, the weekly said.

A special meeting of Porsche's board of directors could decide in early July on a capital increase to present to shareholders at an annual general meeting in September.

"At the latest by November, four to five billion euros (5.6 to 7.0 billion dollars) could be added to Porsche's accounts by a capital increase," Spiegel said.

According to the Sunday edition of the Frankfurter Allgemeine Zeitung, how Qatar can invest in Porsche will be discussed this weekend.

Qatar has asked for voting shares, a first at Porsche which is wholly controlled by members of the Porsche-Piech families, German media reported.

Porsche is being crushed by nine billion euros in debt incurred when it tried to take over Volkswagen, the biggest European carmaker in which Porsche now holds a stake of 51 percent.

Porsche abandoned its bid to take full control of VW last month and the two car makers said they would discuss terms of a merger, but disagreements quickly surfaced between the Porsche and Piech families.

The state of Qatar investing in Porsche could allow the car maker to revive its original plan of taking over the much bigger VW.

It would also mark the second major investment by Middle Eastern interests in Germany's auto sector.

In late March, the Abu Dhabi state investment fund Aabar Investments bought a nine percent stake in Daimler, which owns Mercedes-Benz.

Porsche could not be reached Saturday for comment on the media reports.


Recent financial crisis has made a lot of opportunities for Middle eastern billionaires to invest heavily in the German automotive sector ... I know they are in debt due to the VW "takeover" but I don't know why but i don't feel comfortable with news like this. But maybe that's me feeling protective about the uber-neighbours

[Garduna]

Middle eastern car ownership takeover is in full effect! Ya, I don't really feel good hearing news like this either for some strange reason....My gut feeling says "NOOOOO!"

[Heinzftw]

No bueno.....

[blue2fire]

Wily people, they are getting it for a pittance.

[335ifanatic]

I don't see the big deal. Would rather have these car companies turn to their gov't's and have them use your tax money to bail them out? I sure don't.

[JeepJeep]

Originally Posted by Garduna

Middle eastern car ownership takeover is in full effect! Ya, I don't really feel good hearing news like this either for some strange reason....My gut feeling says "NOOOOO!"

Maybe its the natural, inbred feeling of fear and hatred of Northern Americans towards Middle Easterners.

Or maybe it's just because somehow you foresee Porsche releasing new special edition solid gold and chrome plated Cayennes down the road.

[stickypaws]

It's unfortunate that Dr.Ing.h.c.F.Porsche AG (a mouthful, but that's their name) had taken on the role of hedge fund managers in their bid for VW. Now it's come back to bite them.

Their financial history has always been up and down over the decades. I think it's part of the package of being a small specialty company. The 996, 997, Cayenne and now the Panamera are a result of moving from handbuilt to mass produced automobiles that cover a wider demographic.

It's not easy to run a company based on one iconographic model. Nissan, BMW, MB, Toyota, etc. all have a broader base to begin with.

I hope somebody steps in with the capital. Aston was dealt with in the same way (Kuwait's Dar and Adeem Investment Co) and it's still holding on.

[Sephiroth]

I think its a good move, for both parties. The Arabs have proven to be very reliable financiers, even during the tough times.

[Matty C]

I like the idea. Maybe with new money coming in we could see a better model selection. Maybe it will also kill the 4 cylindar Boxster?

[Bols]

agreed, they are the most logical solution having that much money, but all i can think about is why ? Do they plan on keeping oil in cars for as long as possible , or do they want to ensure their futures by getting shares in carmakers that are sure to be creating hybrids, h20's and electrical cars ? Or maybe its just that i'm paranoid when it comes to foreigners lol

[Raja Ventureshield]

Go Qata Type R.