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September 29, 2009

UAE: Qatar may increase VW investment

The Gulf state of Qatar wants to increase its stake in Volkswagen AG after the German carmaker completes its takeover of Porsche SE, according to an investment authority board member.

QATAR: Emirate says it may increase investment in VW

The Gulf state of Qatar wants to increase its stake in Volkswagen AG after the German carmaker completes its takeover of Porsche SE, according to an investment authority board member.

Hussain Al-Abdulla told Bloomberg News the emirate would boost its stake if the opportunity arose. Qatar already has 10% voting rights in Porsche and options that would give it a 17% stake in Volkswagen as part of the agreement last month for the two German manufacturers to merge.

VW will pay about EUR3.3 bn (US$4.8 bn) for a 42% stake in Porsche SE’s automotive and fully integrate the business in 2011 as long as all merger requirements are met.

The Qatari financial commitment to the VW-Porsche merger amounts to EUR7 bn (US$10.2bn). Porsche has pledged to set up a centre for research, development and testing in the emirate.

Qatar eventually wants to have two board seats at the combined carmaker, Al-Abdulla said. It currently has no seats on Porsche’s board, though it is seeking to gain representation.

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