Friday, June 19, 2009

Porsche in Search of New Investors

Now Porsche is trying to improve its balance sheet by getting an outside investor. This investor appears to Qatar. At this point, the Porsche and Piech owner family controls 100% of the company's voting shares. This transaction is expected to encourage Europe`s currency market investors.

Additionally, Porsche has asked for a €1.75 billion loan from KfW which is a state-controlled bank for the remainder of a €12.5 billion credit facility, which Porsche anticipated to secure as credit markets turned downside due to financial market woes.

The outcome of the talks with Qatar and KfW are agreed to have a significant impact on Porsche's position in negotiations with Volkswagen over fusion into an integrated company. Both Porsche and Volkswagen keep silence about the current status and prospects of the merger talks since news broke that Porsche might clinch a deal with Qatar.

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