Volkswagen Delays Merger With Porsche Beyond 2011
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Following the agreement, Volkswagen took a 49.9% stake in Porsche's sports car unit. It acquired options to take over the remaining 50.1% stake at a later stage if the merger didn't take place. Porsche's holding company would remain a separate entity. Last February the merger was delayed and now it has been delayed again.
Volkswagen said today that it cannot implement the merger in the timeframe provided in the agreement because it is impossible to quantify the economic risks and therefore perform the valuation of Porsche SE required to determine the exchange ratio. Volkswagen has stated ongoing legal actions brought against Porsche in Germany and the U.S. for alleged market manipulation cannot be removed in time.
Porsche said in a separate statement that the companies could not agree on a valuation of Porsche SE required for calculating the exchange rate. and that they viewed the allegations as well as the damage claims in Germany to be without merit. They also said that the damage claims in the U.S. were inadmissible and without merit.
In the coming weeks, Volkswagen AG’s Board of Management will look at other ways to create an integrated automotive group with Porsche and will present their findings to Volkswagen’s Supervisory Board by the end of the year as the saga of Volkswagen and Porsche continues.