Rumors of an investment deal between Porsche and Qatar have been circling the internet rumor mill for several weeks now, with a final agreement likely to be made by next month. However, Qatar’s interest in Porsche has reportedly shifted, with the Qatar Investment Authority now eyeing a stake in Volkswagen by way of Porsche.

Initial reports suggested Qatar could take up to a 25 percent stake in Porsche. However, according to a new Automotive News report, Qatar is now planning to take a vested interest in VW by way of Porsche’s current VW shares.

Porsche currently holds a significant amount of VW call options — equivalent to a 20 percent stake in Europe’s largest automaker – which are reportedly the target of the Qatar Investment Authority. The options would make Qatar VW’s third largest shareholder, behind Porsche and the German state of Lower Saxony.

“It looks as if Qatar will buy Volkswagen shares,” an inside source told Automotive News.

Although still a minority stake, Qatar’s potential 20 percent ownership of VW could dilute Lower Saxony’s influence over VW. However, with its current financial state, selling its VW options is viewed as Porsche’s only option to successfully merge with VW.

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