VW CEO Martin Winterkor sees 30% chance Porsche merger will fail

VW CEO Martin Winterkor sees 30% chance Porsche merger will fail
As potential legal and tax liabilities have increased in the last few months, VW CEO Martin Winterkorn estimates that there is a 30% chance that there won’t be a Porsche-VW merger under the leadership of VW. This indicates that there is a probability that investors who are holding preferred shares in Porsche SE will not be able to swap their stock for equity in Volkswagen. In an interview with Automobilwoche, a sister publication of Automotive News Europe, Winterkorn said that its lawyers are closely examining the risks.
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kuvakas1kuvakas1 - 11/1/2010 4:43:45 PM
+1 Boost
I thought this was a done deal...no?


VISOVISO - 11/1/2010 8:17:10 PM
-1 Boost
That is not a very well thought out argument. If the merger does not take place, then Porsche is likely to fail or it will have to be bought by some other player. Of course, the legal issues surrounding Porsche's investment and tax issues will prevent any other firm from doing the same. VW is Porsche's only hope as saviour. So let's hope it will occur. I am sure it will. The German government will compromise to make this happen. It is too much in the German national interest to make the merger happen.


theoptimisticpessimisttheoptimisticpessimist - 11/1/2010 6:33:27 PM
+2 Boost
Come on 30%!!!


TauronB2GTauronB2G - 11/1/2010 10:10:10 PM
+2 Boost
VISO are you on crack? Porsches will not fail without VW. Admittedly Porsche was going to buy VW for emissions reasons. But with them going offering Hybrids (even though I think they are vile) they will be able to raise the average mileage. I'm also positive that the new Boxster and the new 911 will both have fuel sipping technology of some sort that will further edge up that requirement.
Next remember that intially Porsche was taking over VW & that Porsche had to save VW from being taken over a few years ago. Lastly Porsche helps VW design products and VW helps Porsche build. They have been operating independantly this way for years so why should it change?
VW was/will water down Porsche so like most republicans feel about our commander in chief, I hope the merger fails!!!
T


VISOVISO - 11/1/2010 10:23:53 PM
+1 Boost
TauronB2G, I could barely follow your counter-point. It is a bit too early to celebrate California's Proposition 19 passing. Not sure what you are talking about design, etc. VW, Audi, and Porsche have always been connected from a family point of view and have cooperated together going back to the 30s between Auto Union and Mr. Porsche. Porsche was never able to take over VAG. They manipulated stock prices, etc. (study the news a little better) to attempt a take over. When the markets collapsed Porsche was exposed for it fraudalent activity and now faces huge liabilities. The atttempted buy out by Porsche of VAG would have failed no matter what. No matter what happens, and I am sure VW and Audi will previal in taking over Porsche completely considering Audi's amount of cash in its war chest (another 2.3 Billion Euros was added to it coffers recently from profit), VAG will assume control of Porsche once it figures out how to overcome some of the legal issues surrounding Porsche's stock and investment liabilities. As for hybrids and the rest, that is combined strategy between VW, Audi, and Porsche. Porsche can only thrive under VW and Audi.


TauronB2GTauronB2G - 11/1/2010 11:05:22 PM
+1 Boost
Sorry for the 2st post...I was typing really fast. Porsche will not be taken over by VW...its a poor move. A takeover will oly limit the brand. they do not want Porsche competing in the market that Lamborghini competes in. They are already watering down the R8 to avoid competitiong with the Gallardo. Why would they need another performance brand in the middle. It doesn't make sense.
My point about hybrids is just that hybrids and other fuel saving technologies will help Porsche meet its CO2 and mileage goals.
Porsche did try to manipulate the stock price of VW to attempt the take over. But like I said, it was Porsche taking over VW. When Porsche initially started acquiring large chunks of VW stock it was because VW was on the verge of being taken over by a company outside Germany.
Porsche will only be limited by VW...VW needs Porsche...Porsche doesn't need VW. Porsche has been one of the most profitable brands for years. Only since the stock market debacle have they had problems.
T


sdcarguysdcarguy - 11/1/2010 10:24:37 PM
+2 Boost
Lets hope so.


internationalmanofmysteryinternationalmanofmystery - 11/2/2010 10:21:57 AM
+1 Boost
And here I am thinking it was something serious...like Porsche being lousy in bed!!


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