Sunday 7 June 2009

Qatar 'to help Porsche clear heavy debt burden' (Update 1)

Qatar will strike a deal with Porsche by mid-June that will help the German sports car maker to pay down its 9 billion euro (Dh46.1 billion) debt pile, German weekly Focus reported.

Porsche's chief executive Wendelin Wiedeking has already travelled to Qatar several times and has worked out two possible options for an agreement with Doha, the magazine said in an article to be published on Monday.

Qatar's prime minister had told Reuters on May 30 that Qatar was considering taking a stake in debt-laden Porsche or other German auto companies after Porsche scaled down a bid for Volkswagen.

One option is for Qatar to buy up Porsche's options for 24 per cent of shares of Volkswagen via its fund Qatar Investment Authority (QIA), flushing cash into Porsche's coffers and giving Volkswagen a new major shareholder.

Another option would be for Qatar to buy a direct stake in Porsche Holding, which controls the company's sports car business as well as its 51 per cent stake in Volkswagen. This option would be more complicated because it would require a capital increase as well as an extraordinary shareholders meeting.

Neither Porsche nor Qatar Investment Authority were immediately available for comment.END

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