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Porsche Automobil is for sale, Wendelin Wiedeking’s era at Porsche is over
By Amarendra Bhushan for CEOWORLD Magazine Updated:July 4, 2009
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Three new parties with an interest in taking a stake in German luxury-vehicle car maker Porsche Automobil Holding and its stock options in Volkswagen AG have emerged besides the Qatar Investment Authority.
Porsche struggling under the 9 billion euros ($12.62 billion) debt, which owns 51 percent in Volkswagen, is seeking an outside investor and was forced to abandon efforts to raise its Volkswagen stake to 75 percent.
Reuters reported, Porsche’s squabbling owners are set to discuss an investment by Qatar in the next two weeks, a milestone which could change the dynamics of a Porsche/Volkswagen merger, people close to the talks said.
A decision on Qatar’s entry may come even before key family members are set to gather at a Volkswagen supervisory board meeting on July 15, and a day later for the centenary celebrations at VW unit Audi, the people said.
Sovereign wealth funds from Russia and China and an unnamed hedge fund are the possible bidders.
Wendelin Wiedeking transformed the sports-car manufacturer, almost bankrupt when he became chief executive officer in 1993, into the automaker with the highest profit margins for the industry.
In 2005, he began using cash from the luxury-vehicle business to acquire shares of Volkswagen, a company that builds more cars in a week than Porsche does in a year.
A deal with Qatar may be the CEO’s last chance to preserve Porsche’s control over VW, and may cost Germany’s best-paid manager his job.
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