VW to pay $11.28 billion for ALL of Porsche
07-18-2009, 07:43 PM
#1
Nordschleife Master
Thread Starter
VW to pay $11.28 billion for ALL of Porsche
Well, we finally have some closure on this issue ... Long live Porsche/VW ...
VW to pay $11.28 billion for all of Porsche
Sat Jul 18, 2009
FRANKFURT (Reuters) - Porsche SE's controlling families will agree on Thursday to accept an offer by Volkswagen to buy its sports car business Porsche AG for roughly 8 billion euros ($11.28 billion), Der Spiegel reported on Saturday.
Germany's leading weekly magazine wrote that the rival Porsche and Piech clans, which own 100 percent of Porsche SE votes, will approve the two-stage takeover at a supervisory board meeting on July 23.
Volkswagen would purchase a 49.9 percent stake in Porsche AG and at a later date acquire the rest, in a deal that would create an integrated automotive group with 10 brands under the leadership of the Wolfsburg-based carmaker.
The sale would help Porsche SE pay off most of its debt, which two sources told Reuters has ballooned to considerably more than 10 billion euros.
Der Spiegel also said embattled Porsche SE and Porsche AG Chief Executive Wendelin Wiedeking is negotiating over a severance package that could total more than 100 million euros. In the meantime, production chief Michael Macht will replace him as head of Porsche AG, the magazine reported.
On Thursday, Wiedeking rejected speculation he was about to leave the group.
Asked on Saturday whether the two families have reached a decision for the July 23 board meeting, Porsche spokesman Anton Hunger said "we have not been informed of one," adding that the Spiegel report was speculation that the company would not comment on.
Separately rival German weekly magazine Focus reported that Volkswagen's powerful chairman and part-owner of Porsche, Ferdinand Piech, plans to remove Wiedeking on Thursday from the influential six-man steering committee on the VW supervisory board.
The vacancy could open up the opportunity for Piech's cousin and rival, Wolfgang Porsche, VW supervisory board member and Porsche SE chairman, to replace Wiedeking in the committee as a representative of his side of the family.
The grandfather of Wolfgang Porsche and Ferdinand Piech was Ferdinand Porsche, designer of the Beetle and founder of Volkswagen.
(Reporting by Christiaan Hetzner; Editing by Victoria Main)
Sat Jul 18, 2009
FRANKFURT (Reuters) - Porsche SE's controlling families will agree on Thursday to accept an offer by Volkswagen to buy its sports car business Porsche AG for roughly 8 billion euros ($11.28 billion), Der Spiegel reported on Saturday.
Germany's leading weekly magazine wrote that the rival Porsche and Piech clans, which own 100 percent of Porsche SE votes, will approve the two-stage takeover at a supervisory board meeting on July 23.
Volkswagen would purchase a 49.9 percent stake in Porsche AG and at a later date acquire the rest, in a deal that would create an integrated automotive group with 10 brands under the leadership of the Wolfsburg-based carmaker.
The sale would help Porsche SE pay off most of its debt, which two sources told Reuters has ballooned to considerably more than 10 billion euros.
Der Spiegel also said embattled Porsche SE and Porsche AG Chief Executive Wendelin Wiedeking is negotiating over a severance package that could total more than 100 million euros. In the meantime, production chief Michael Macht will replace him as head of Porsche AG, the magazine reported.
On Thursday, Wiedeking rejected speculation he was about to leave the group.
Asked on Saturday whether the two families have reached a decision for the July 23 board meeting, Porsche spokesman Anton Hunger said "we have not been informed of one," adding that the Spiegel report was speculation that the company would not comment on.
Separately rival German weekly magazine Focus reported that Volkswagen's powerful chairman and part-owner of Porsche, Ferdinand Piech, plans to remove Wiedeking on Thursday from the influential six-man steering committee on the VW supervisory board.
The vacancy could open up the opportunity for Piech's cousin and rival, Wolfgang Porsche, VW supervisory board member and Porsche SE chairman, to replace Wiedeking in the committee as a representative of his side of the family.
The grandfather of Wolfgang Porsche and Ferdinand Piech was Ferdinand Porsche, designer of the Beetle and founder of Volkswagen.
(Reporting by Christiaan Hetzner; Editing by Victoria Main)
07-18-2009, 08:01 PM
#2
Nordschleife Master
Thread Starter
Guess who's in the drivers seat now ... Piech ...
Last edited by FlatSix911; 07-18-2009 at 11:37 PM.
07-23-2009, 12:48 PM
#3
Nordschleife Master
Thread Starter
Defeated Porsche axes CEO to make way for VW merger
The deal is done...
Defeated Porsche axes CEO to make way for VW merger
Thu Jul 23, 2009 By Christiaan Hetzner and Hendrik Sackmann
STUTTGART (Reuters) - Porsche conceded defeat in a months-long power struggle with Volkswagen on Thursday by axing its embattled CEO, paving the way for VW to merge with the maker of the 911 sportscar.
As a way to improve its negotiating position with Volkswagen, Porsche said it would raise at least 5 billion euros ($7.1 billion) in equity as the two prepared to create an "integrated automotive group."
Meanwhile Volkswagen said in a statement it would buy a stake in Porsche AG, the company's financially healthy sports car business, and "gradually" expand this over time.
The two companies aim to then complete the merger by mid-2011, said Christian Wulff, premier of Lower Saxony, the German state that is Volkswagen's second largest shareholder.
"I'm optimistic that we can lay out the details of our agreement in principle during a supervisory board meeting on August 13," he added.
In addition Wulff said the Gulf state of Qatar is set to buy a financial derivatives package that controls 17 percent of Volkswagen shares, in a further move to ease Porsche's financial woes, and could expand its stake by acquiring non-voting preferred shares.
Porsche amassed over 10 billion euros in debt during a botched attempt to build a 75 percent stake in VW. Weighed down by the debt, Porsche was forced to abandon further stakebuilding earlier this year and negotiate a merger instead.
But disagreements between the two companies about how to structure a deal held up negotiations.
Porsche's veteran chief executive, Wendelin Wiedeking, opposed a sale of Porsche to VW, clashing with Ferdinand Piech, the 72-year-old chairman of VW and grandson of Porsche's founder, Ferdinand Porsche.
Early on Thursday Porsche said Wiedeking, CEO for the past 16 years and Germany's best-paid executive, would leave the group immediately, along with finance chief Holger Haerter.
Speaking to workers assembled at Porsche's factory in Zuffenhausen, Germany, Wiedeking said he had taken the decision to step down a week ago, as it was time to "draw a line" behind Porsche's woes and move forward.
Chairman Wolfgang Porsche said at the meeting Porsche aims to "secure an independent future for Porsche as part of a globally leading manufacturer." Fighting back tears, he added that the legend of Porsche "will not go under."
MERGER ON EQUAL FOOTING
Michael Macht, who succeeds Wiedeking as CEO, said Porsche now needed to strike a deal with VW "on an equal footing." VW's CEO Martin Winterkorn gave assurances that Porsche would remain an independent brand within the Volkswagen group just like Audi.
"What is good news is that decisions have at least been prepared. However, still a huge amount of questions (are) open," said MM Warburg analyst Marc-Rene Tonn.
It remained unclear whether Qatar could take a stake in Porsche voting shares, in Volkswagen, or in both.
The Porsche and Piech families, which trace their origins back to VW Beetle creator Ferdinand Porsche, did not say if they would participate in the capital increase, but analysts believe the families could bring in the assets of their Salzburg-based Porsche Holding instead of cash.
An analyst who asked not to be named agreed: "I cannot think of another asset the families have."
Porsche Holding is Europe's largest auto dealership group, with sales of 13.7 billion euros last year.
At 1417 GMT Porsche shares were up 0.14 percent at 51.84 euros, while Volkswagen's were down 0.16 percent at 251.55 euros, while the DJ Stoxx European autos index was up 1.25 percent.
Wiedeking, credited with turning Porsche round to become one of the world's most profitable carmakers during his 16 years at the helm, will be succeeded by Porsche's production head Michael Macht, the board said in a statement early on Thursday.
The duo's hasty exit will be sweetened by severance deals of 50 million euros and 12.5 million euros. Wiedeking, who had been criticized by German media for his fat pay check, said in a statement his after-tax payoff would be used for charity.
Following the credit crunch Porsche was forced to abandon attempts to win control over 75 percent of VW, leaving it with a stake of nearly 51 percent and opening the door to VW's Piech, himself a part-owner of Porsche, to turn the tables on Porsche.
The audacious attempt to take over VW was one of Wiedeking's favorite examples of the small car maker punching above its weight. "Because nobody had this on their radar, it struck like a thunderbolt," Wiedeking once said.
In the event of a sale, Porsche would become the 10th brand in Volkswagen's sweeping automotive empire. ($1=.7030 euros)
Thu Jul 23, 2009 By Christiaan Hetzner and Hendrik Sackmann
STUTTGART (Reuters) - Porsche conceded defeat in a months-long power struggle with Volkswagen on Thursday by axing its embattled CEO, paving the way for VW to merge with the maker of the 911 sportscar.
As a way to improve its negotiating position with Volkswagen, Porsche said it would raise at least 5 billion euros ($7.1 billion) in equity as the two prepared to create an "integrated automotive group."
Meanwhile Volkswagen said in a statement it would buy a stake in Porsche AG, the company's financially healthy sports car business, and "gradually" expand this over time.
The two companies aim to then complete the merger by mid-2011, said Christian Wulff, premier of Lower Saxony, the German state that is Volkswagen's second largest shareholder.
"I'm optimistic that we can lay out the details of our agreement in principle during a supervisory board meeting on August 13," he added.
In addition Wulff said the Gulf state of Qatar is set to buy a financial derivatives package that controls 17 percent of Volkswagen shares, in a further move to ease Porsche's financial woes, and could expand its stake by acquiring non-voting preferred shares.
Porsche amassed over 10 billion euros in debt during a botched attempt to build a 75 percent stake in VW. Weighed down by the debt, Porsche was forced to abandon further stakebuilding earlier this year and negotiate a merger instead.
But disagreements between the two companies about how to structure a deal held up negotiations.
Porsche's veteran chief executive, Wendelin Wiedeking, opposed a sale of Porsche to VW, clashing with Ferdinand Piech, the 72-year-old chairman of VW and grandson of Porsche's founder, Ferdinand Porsche.
Early on Thursday Porsche said Wiedeking, CEO for the past 16 years and Germany's best-paid executive, would leave the group immediately, along with finance chief Holger Haerter.
Speaking to workers assembled at Porsche's factory in Zuffenhausen, Germany, Wiedeking said he had taken the decision to step down a week ago, as it was time to "draw a line" behind Porsche's woes and move forward.
Chairman Wolfgang Porsche said at the meeting Porsche aims to "secure an independent future for Porsche as part of a globally leading manufacturer." Fighting back tears, he added that the legend of Porsche "will not go under."
MERGER ON EQUAL FOOTING
Michael Macht, who succeeds Wiedeking as CEO, said Porsche now needed to strike a deal with VW "on an equal footing." VW's CEO Martin Winterkorn gave assurances that Porsche would remain an independent brand within the Volkswagen group just like Audi.
"What is good news is that decisions have at least been prepared. However, still a huge amount of questions (are) open," said MM Warburg analyst Marc-Rene Tonn.
It remained unclear whether Qatar could take a stake in Porsche voting shares, in Volkswagen, or in both.
The Porsche and Piech families, which trace their origins back to VW Beetle creator Ferdinand Porsche, did not say if they would participate in the capital increase, but analysts believe the families could bring in the assets of their Salzburg-based Porsche Holding instead of cash.
An analyst who asked not to be named agreed: "I cannot think of another asset the families have."
Porsche Holding is Europe's largest auto dealership group, with sales of 13.7 billion euros last year.
At 1417 GMT Porsche shares were up 0.14 percent at 51.84 euros, while Volkswagen's were down 0.16 percent at 251.55 euros, while the DJ Stoxx European autos index was up 1.25 percent.
Wiedeking, credited with turning Porsche round to become one of the world's most profitable carmakers during his 16 years at the helm, will be succeeded by Porsche's production head Michael Macht, the board said in a statement early on Thursday.
The duo's hasty exit will be sweetened by severance deals of 50 million euros and 12.5 million euros. Wiedeking, who had been criticized by German media for his fat pay check, said in a statement his after-tax payoff would be used for charity.
Following the credit crunch Porsche was forced to abandon attempts to win control over 75 percent of VW, leaving it with a stake of nearly 51 percent and opening the door to VW's Piech, himself a part-owner of Porsche, to turn the tables on Porsche.
The audacious attempt to take over VW was one of Wiedeking's favorite examples of the small car maker punching above its weight. "Because nobody had this on their radar, it struck like a thunderbolt," Wiedeking once said.
In the event of a sale, Porsche would become the 10th brand in Volkswagen's sweeping automotive empire. ($1=.7030 euros)
07-24-2009, 10:05 AM
#5
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Porsche started it,VW finished it, talk of waking the sleeping giant !
07-25-2009, 01:10 AM
#6
Nordschleife Master
Thread Starter
07-26-2009, 02:12 AM
#7
Nordschleife Master
Thread Starter
The price of Porsche debt is increasing ....
Porsche told by Deutsche Bank to pump in cash quickly
Sat Jul 25, 2009
FRANKFURT (Reuters) - Deutsche Bank (DBKGn.DE: Quote, Profile, Research, Stock Buzz) CEO Josef Ackermann has told Porsche's (PSHG_p.DE: Quote, Profile, Research, Stock Buzz) owner families of the urgency to stump up cash in order to pay down the company's debts, which have risen to 14 billion euros ($19.88 billion), a German magazine said on Saturday.
Ackermann himself told Porsche supervisory board chairman Wolfgang Porsche that a mere capital increase from the Porsche and Piech families would not be sufficient to pay for the carmaker's financial obligations, a pre-release of Der Spiegel said, citing banking sources.
The debts include some bonds that needed to be paid, it added. Porsche on Thursday agreed it would increase its capital by at least 5 billion euros ahead of a planned integration with Volkswagen (VOWG.DE: Quote, Profile, Research, Stock Buzz). A Porsche spokesman told Reuters he could not confirm the 14 billion euros figure. He said Porsche's net debts total around 10 billion euros. In January, the total was around 9 billion euros.
Sat Jul 25, 2009
FRANKFURT (Reuters) - Deutsche Bank (DBKGn.DE: Quote, Profile, Research, Stock Buzz) CEO Josef Ackermann has told Porsche's (PSHG_p.DE: Quote, Profile, Research, Stock Buzz) owner families of the urgency to stump up cash in order to pay down the company's debts, which have risen to 14 billion euros ($19.88 billion), a German magazine said on Saturday.
Ackermann himself told Porsche supervisory board chairman Wolfgang Porsche that a mere capital increase from the Porsche and Piech families would not be sufficient to pay for the carmaker's financial obligations, a pre-release of Der Spiegel said, citing banking sources.
The debts include some bonds that needed to be paid, it added. Porsche on Thursday agreed it would increase its capital by at least 5 billion euros ahead of a planned integration with Volkswagen (VOWG.DE: Quote, Profile, Research, Stock Buzz). A Porsche spokesman told Reuters he could not confirm the 14 billion euros figure. He said Porsche's net debts total around 10 billion euros. In January, the total was around 9 billion euros.
