Volkswagen is currently considering whether to conclude a deal to buy out Porsche before November.
After weeks of speculation as to whether the deal will go ahead, it seems as if everything could be back on track.
There is currently 50.1 % of the Porsche remaining from what Volkswagen already own. Executives are currently analysing the deal ahead of a possible takeover whilst trying to avoid the previous legal tangles of before. If a resolution cannot be found then alternative routes will be taken.
Porsche currently have a clause stating that from November 15th they can exercise an option to sell the 50.1 % stake left in their business. Volkswagen can call their option of a buyout between March and April 2012 according to reports. However both companies would like something to happen sooner rather than later.
Volkswagen and Porsche Executive Martin Winterkorn has said in a press conference that better co operation between the two companies needs to be established like the relationship with the rest of the VW Group. He said “We want to cooperate with Porsche in such a way that as many synergies can be leveraged as soon as possible without needing to have a lawyer stand next to a Porsche employee every time he screws something into a Volkswagen or vice-versa. We are already working with Porsche now, on a joint electronic platform for example, but that is just business at arm’s length. We want to work with them like we do with Audi, Seat and Skoda”.
There have been rumours that the takeover may or may not happen depending on if a certain tax bill could be avoided. Matthias Mueller has said that everything needs to be analysed and timing is important. At the Frankfurt Motor Show he said “The earlier possible time is 2012, but then the tax effect needs to be considered, so we need to examine when the right time is for the put-call option. It’s not as if we don’t want to pay any taxes, though,”
As mentioned earlier, Volkswagen currently holds 49.9 % of Porsche. This was purchased in December 2009 for a staggering $6.4 billion. Are they able to purchase the rest?