Porsche, Qatar to own stakes in new Volkswagen

WOLFSBURG, Germany (AP) — The Porsche and Piech families, which control Porsche AG, will probably own about 40 percent of a new joint Volkswagen-Porsche company, while a Qatar investment fund will also take a significant stake, a Volkswagen official said Friday.

Volkswagen also plans a capital hike in 2010 — it will sell preferred shares in the new company to raise about 4 billion euros ($6 billion) — to help fund the deal announced Thursday, said VW’s chief financial officer Hans Dieter Poetsch.

The Porsche controlling families expect to take a stake of around 35 to 39 percent in the new company, while the Emirate Qatar “would become the third biggest shareholder at VW with a substantial stake,” Poetsch said at a meeting of Volkswagen workers at Volkswagen’s Wolfsburg headquarters.

On Thursday, Volkswagen’s supervisory board approved absorbing Porsche AG into VW by the end of 2011, with an initial 42 percent stake to be acquired this year for 3.3 billion euro ($4.72 billion). Volkswagen will then in turn buy Porsche SE, the Salzburg-Austria based automobile trading business, for 3.55 billion euro starting in 2011.

“Volkswagen’s solid financial base and Porsche’s independence will be preserved,” VW said.

Poetsch said the exact capital position of the families in the new company would depend on specific criteria which would be reviewed during the process of the merger. Stuttgart-based Porsche AG is currently Volkswagen’s biggest shareholder with about 52 percent.

Meanwhile, Poetsch said Qatar’s investment would be just below that of the state of Lower Saxony. Lower Saxony holds about 21 percent of VW and will maintain its long disputed blocking minority at the carmaker.

Poetsch said the negotiations between Porsche and Qatar for the purchase of Porsche’s stock options in VW were advanced, with a decision expected in the coming weeks.

Bernd Osterloh, Volkswagen’s workers’ council chairman said Friday that Volkswagen workers could invest in a stake in the new company of between one percent and five percent.

Volkswagen, Europe’s biggest car company by sales, and Porsche, famous the world around for its sportscars, said the new group would realize about 700 million euro in synergies yearly, as Volkswagen pursues its stated goal of becoming the world’s biggest automotive group.

Porsche will become the 10th brand at VW, joining the ranks of Audi, Bentley and Skoda. VW is also a major shareholder in two of the continent’s biggest truckmakers: Scania AB of Sweden and MAN SE of Germany.

An extraordinary shareholder meeting at VW will be scheduled this year for the approval of the capital hike.