Porsche has managed to keep its name in the headlines for the past several weeks, but not for the reasons the German sports car maker is accustomed to. Following a failed takeover of Volkswagen – Europe’s largest automaker – Porsche was left with a massive $12 billion debt, leaving the automaker’s financial health in question. Porsche has kept relative quite on the subject but announced on Tuesday that it is currently holding investment talks with the Gulf state of Qatar.
Porsche spokesman Albrecht Bamler revealed to Bloomberg that the company is currently holding investment negotiations with Qatar. Rumors of Qatar’s interest in Porsche first surfaced in April, but were unconfirmed until today.
The exact terms of the proposal remain unknown, but sources familiar with the talks have indicated Qatar could take a 25 percent stake in Porsche . An agreement could be reached as early as next month.
Porsche has found itself under a mountain of debt as of late, including a $12 billion deficit racked up by the failed takeover of VW. The German automaker is reportedly facing a $3.5 billion cash shortfall, which is likely the main reason behind the negotiations with Qatar.
Reports also surfaced yesterday that Porsche is mulling the sale of its VW call options. No bidders have been named in the call option sale, but it remains possible Qatar is also involved in those talks. The options are said to represent a 20 percent stake in VW.
