VH_Supra26
05-18-2009, 10:22 AM
Alex Kaufmann
http://www.motorauthority.com/content/thumbs/p/o/porsche_vw_logo_main_630-1028-630x360.jpg
The announcement comes after weeks of back-and-forth on a possible sale of Porsche to VW
Like the Ouroboros, Porsche and Volkswagen have been considering an arrangement that would have heavily indebted Porsche Automobil-owned Volkswagen purchasing Porsche AG. A tentative solution was reached earlier this month that would have seen Porsche and VW combine to put 10 brands under a single corporate structure, however, a rift between the two companies have brought negotiations to a halt.
VW said on Sunday that talks about an integrated company with Porsche scheduled for Monday have been canceled.
"VW shares the view of Mr Bernd Osterloh (VW’s labor boss) that there is currently no atmosphere for constructive talks," a company spokesman told Dow Jones. Porsche spokesman Albrecht Bamler said the company will stick to the agreed confidentiality of the talks and declined to elaborate further.
While no specific reason was given by VW, the decision most likely stems from an ongoing rift over the future management and structure of the combined enterprise.
It's not yet clear how the move will affect Porsche Automobil dealings with its massive €9 billion ($12 billion) debt, which has already forced the company to abandon its plan to push for a 75% stake in VW and gain access to any cash reserves. To further muddy the waters, Bamler also revealed that his company can finance its credit payments and confirmed that Porsche might get an outside investor on board.
All Content Copyright 2006-2008 Motor Authority
http://www.motorauthority.com/porsche-to-make-decision-on-sale-to-vw-this-wednesday.html
http://www.motorauthority.com/content/thumbs/p/o/porsche_vw_logo_main_630-1028-630x360.jpg
The announcement comes after weeks of back-and-forth on a possible sale of Porsche to VW
Like the Ouroboros, Porsche and Volkswagen have been considering an arrangement that would have heavily indebted Porsche Automobil-owned Volkswagen purchasing Porsche AG. A tentative solution was reached earlier this month that would have seen Porsche and VW combine to put 10 brands under a single corporate structure, however, a rift between the two companies have brought negotiations to a halt.
VW said on Sunday that talks about an integrated company with Porsche scheduled for Monday have been canceled.
"VW shares the view of Mr Bernd Osterloh (VW’s labor boss) that there is currently no atmosphere for constructive talks," a company spokesman told Dow Jones. Porsche spokesman Albrecht Bamler said the company will stick to the agreed confidentiality of the talks and declined to elaborate further.
While no specific reason was given by VW, the decision most likely stems from an ongoing rift over the future management and structure of the combined enterprise.
It's not yet clear how the move will affect Porsche Automobil dealings with its massive €9 billion ($12 billion) debt, which has already forced the company to abandon its plan to push for a 75% stake in VW and gain access to any cash reserves. To further muddy the waters, Bamler also revealed that his company can finance its credit payments and confirmed that Porsche might get an outside investor on board.
All Content Copyright 2006-2008 Motor Authority
http://www.motorauthority.com/porsche-to-make-decision-on-sale-to-vw-this-wednesday.html