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Thursday, 2 July 2009

Qatar eyeing bigger stake in Porsche/VW deal

Porsche Automobil Holding SE might enter a deal under which it would sell the majority of its options on Volkswagen AG shares to Qatar and divest a smaller stake in itself, as initially planned, to the Arab emirate, a person familiar with the matter told the Dow Jones Newswires on Wednesday.

If successful, the crucial deal to shore up Porsche's balance sheet could include a capital increase of around 5 billion euros and additional financial support from Qatar through a credit or guarantees, the person said.

On Monday, Porsche confirmed it received an offer from state-owned Qatar Investment Authority over a capital injection, just hours after it rebuffed an offer from Volkswagen.

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