In order to shore up some of its rocky finances ahead of a Volkswagen integration, Porsche is reportedly readying the sale of its Volkswagen share options. The call options have the potential to be converted into about a 20 percent stake of VW.
The options have helped Porsche’s profits to exceed sales, but the German automaker’s poor financial standing has likely left the company unable to exercise the options, according to Bloomberg. As such, Porsche may be looking to unload the call options in order to off-set some of the $12 billion debt it incurred in its quest to takeover Volkswagen.
The options, when combined with Porsche’s current 51 percent stake in VW, would have given the sports car maker more than a 70 percent interest in Volkswagen. The purchaser of the options will be entitled to the cash equivalent of VW’s common stock price, less a yet-to-be-disclosed strike price.
No bidders have officially stepped forward, but the Gulf state of Qatar is believed to be among the front-runners. Rumors of Qatar’s interest in Porsche first surfaced in April, with Qatari Finance Minister Youssef Kamal confirming those reports last week.
06/08, 2:27 PM
posted by:
A4
It was like Nicaragua tried to invade the US or something. Idiots.
06/08, 2:47 PM
posted by:
Borat
A4, have you seen next supreme judge? They may succeeded without you noticing.
06/08, 3:06 PM
posted by:
JakeK66
What are you reffering to A4? Niche brand Porsche taking over huge VW or Qatar taking over some of both?
06/08, 3:43 PM
posted by:
A4
Porsche trying to get on top of VWAG, VWAG pretty much produces in a week or two what Porsche ultimately puts out in a whole year. And then all the slandering and childish antics that took place from Porsche against Piech in attempts to oust him as VW chairman, this company does not have the wherewithal to handle an automotive powerhouse like VWAG, especially when they are one of the few auto companies in todays environment that is staying relatively healthy.
06/08, 3:56 PM
posted by:
ahnuconun
They’re going to make a TV Mini-Series about this.
06/08, 4:20 PM
posted by:
scratchy
@ ahnuconun ,don’t give them ideas.
06/08, 4:20 PM
posted by:
JakeK66
You know, they say American businesses are so badly managed, while some indeed are, they are no where near as dramatic and outright crazy as ze Germans. It’s like an episode of As The World Turns everyday at their headquarters, while for Americans it’s more Law and Order.
06/08, 4:35 PM
posted by:
Borat
Jake, I think the show would be more in line as keeping with Kardashians, except instead dumb good looking Kardashians are dumb and fugly looking old krautz trying to nail each other.
06/08, 4:41 PM
posted by:
johnnycanuck
Call it Fahrfrum****en****zengiggles.
06/08, 5:28 PM
posted by:
A4
Well by Borats logic, Wolfgang just needs a huge ass and a sex tape?
06/08, 6:14 PM
posted by:
leftwingagenda
hehe…jake, that reminds me of the ex-ceo of tyco, who had an ice sculpture made in the shape of a cherub that peed vodka at a 2 million dollar party for his wife’s birthday…the company paid for about half of that party…but, hey, it was probably one hell of a party…
http://money.cnn.com/2003/10/28/news/companies/tyco_party/