VW to pay $11.28 billion for all of Porsche

[DainBramaged]

Porsche SE's (PSHG_p.DE) controlling families will agree on Thursday to accept an offer by Volkswagen (VOWG.DE) to buy its sports car business Porsche AG for roughly 8 billion euros ($11.28 billion), Der Spiegel reported on Saturday.

Germany's leading weekly magazine wrote that the rival Porsche and Piech clans, which own 100 percent of Porsche SE votes, will approve the two-stage takeover at a supervisory board meeting on July 23.

Volkswagen would purchase a 49.9 percent stake in Porsche AG and at a later date acquire the rest, in a deal that would create an integrated automotive group with 10 brands under the leadership of the Wolfsburg-based carmaker.

The sale would help Porsche SE pay off most of its debt, which two sources told Reuters has ballooned to considerably more than 10 billion euros.

Der Spiegel also said embattled Porsche SE and Porsche AG Chief Executive Wendelin Wiedeking is negotiating over a severance package that could total more than 100 million euros. In the meantime, production chief Michael Macht will replace him as head of Porsche AG, the magazine reported.


http://www.reuters.com/article/businessNews/idUSTRE56H1AM20090719

[flvegan]

1. That looks like a good merger.

One that's been probably coming since Ferdinand designed/built the Beetle.

[DainBramaged]

3. I agree Volkswagen could learn reliability from Porsche

[imdjh]

2. You could have fooled me; I thought Porsche and VW were already the same company.

Isn't the VW 1600 engine the same engine as the Karman Ghia, Porsche 356B, and the Porsche 914?

[jmowreader]

4. The Karmann Ghia really is a Volkswagen

Not sure what the Porsche 356 uses, but the engine in the Porsche 914 is the same one as in the Type 4 and in the 1972-1978 Bus. It's got an aluminum case (as opposed to the magnesium case in the Bug engine), the displacement is higher, it's got either dual carbs or fuel injection, the cooling fan is bolted to the end of the crankshaft, and it weighs about twice as much.

[BlooInBloo]

5. You think they're the same company because of cars from like 40 years ago?