VW, Porsche to seal deal in 2012?
BERLIN, Germany - Europe's biggest automaker, Volkswagen, will likely this year complete its takeover of luxury car group Porsche after clearing key hurdles, according to a German media report Sunday.
News weekly Der Spiegel writes in its upcoming issue that VW, which owns 49.9% of Porsche, may buy a 50.1% majority in the automaker for 3.9-billion euros (about R40-billion) in 2012.
The report said the information came from VW executive sources.
Porsche has accumulated huge debts through attempting to seal a tie-up with VW
and Spiegel said two previous obstacles now seemed surmountable.
VW will avoid having to pay more than a billion euros in taxes if it completes the deal before 2014 by creating a holding company to buy and maintain the stake in Porsche, according to the report.
VW would also fulfil Porsche's demands for independence by signing a contract giving the sports-car company control over its investments and models, Spiegel said.
Porsche spectacularly tried to take over VW in 2008 but the attempt failed and the luxury car maker was in turn saved by Volkswagen.
A VW spokesman could not immediately be reached for confirmation.