VW AG and Porsche SE merger unlikely, but VW can still control Porsche AG
Porsche Automobil Holding SE is preparing a new strategy to attract investors as a stand-alone company since a merger with Volkswagen AG is starting too become unlikely.
“We cannot say with certainty which approach Porsche SE will take,” finance chief Hans Dieter Poetsch said.
But that doesn’t mean Volkswagen will have no control over Porsche. While the future of a Porsche SE and Volkswagen Group is cloudy, Volkswagen does plan to take full control of Porsche AG, the company’s car making arm. Poetsch said that Volkswagen can still takeover Porsche AG without combining Porsche SE
Volkswagen Group holds a 49.9 percent stake in Porsche AG.
Poetsch said that Porsche SE wants to become an attractive investment and will try to convince shareholders to believe in its 5 billion euro ($6.97 billion USD) capital increase with a payout already in June.
The merger between Volkswagen and Porsche, originally scheduled for completion in the second half of 2011, has been hit because of legal obstacles.
– By: Omar Rana
Source: Automotive News