Qatar takes key VW-Porsche stake

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Porsche is to sell a 10 per cent voting stake to Qatar Holding LLC as a way to prop up its strained finances, marking a climbdown for a predator that had once sought to dominate Volkswagen.

Qatar Prime Minister Shaikh Hamad Bin Jasem Bin Jaber Al Thani signed the agreement just 24 hours after VW sealed a deal with the iconic German sports carmaker Porsche to merge the two auto manufacturers.

Porsche is selling a 42 per cent stake in Porsche AG for about 3.3 billion euros ($4.7 billion) and also sold a package of cash-settled options on VW shares to Qatar which the company said would free up 1 billion euros in cash for Porsche.

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