Qatar is unlikely to raise its 10% stake in Porsche though it is in talks on potential cooperation in several areas, while the planned merger with Volkswagen is “on the right track”, supervisory board chairman Wolfgang Porsche said on Wednesday.
The Gulf Arab state, through its sovereign wealth fund Qatar Investment Authority, bought a 10% stake in Porsche for US$10bn in September 2009, Reuters noted.
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Porsche SE will be absorbed into the Volkswagen group with shareholders set to receive stock in Europe’s largest carmaker once their own company is debt-free as part of a planned merger.
“They (Qatar) will stay with us until the merger comes through, but more than 10% is not in question”, Wolfgang Porsche told Reuters on the sidelines of an event. “We are in a lot of talks, but no decisions made,” he added.
Earlier this month, a US judge dismissed a hedge fund lawsuit seeking over $2bn in damages, removing a key obstacle to the merger with Volkswagen, the report added. Porsche said an update on whether the ruling will be appealed will be known by the end of January.
The planned merger with Volkswagen was on “the right track”.
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By GlobalData“We are improving. We’re on the right track,” Wolfgang Porsche said.
