Porsche Takes Feud to Media: Accuses Volkswagen of “Extortion”

June 28, 2009

(ChattahBox)—The feud between carmakers Porsche, Volkswagen and its top shareholder, Lower Saxony has now traveled from the boardroom to the media, with Der Spiegel magazine reporting on Volkswagen’s apparent bullying tactics to capture a 49 percent stake in Porsche’s sports car business.

Porsche is now crying foul and playing the role of beleaguered victim, accusing VW of “extortion.”

According to a report in the online edition of Der Spiegel magazine, Porsche Chief Executive Wendelin Wiedeking and Chairman Wolfgang Porsche were pressured by VW to merge the two carmakers with VW in charge, taking a 49 percent stake in Porsche.

Porsche owns 51 percent of Volkswagen, but is drowning in debt, totaling about $12.7 billion, which it developed in previous attempts to overtake VW. Now, VW apparently smells blood and is engaging in some takeover maneuvers of its own.

The “extortion” charge stems from the Der Spiegal report that VW had threatened it would call in a 700 million euro loan it made to Porsche in September, unless Porsche agreed to VW’s terms.

Porsche executives have now made public statements, painting VW as a playground bully, or more like a low level ‘Wise Guy”, “We will not accept extortion. … Ultimatums do not belong in the 21st century,” said Wolfgang Porsche and his deputy Uwe Hueck.

Also involved in the dispute is the Emirate of Qatar, which joined with VW to purchase Porsche’s stock options in VW, which would give Qatar a 15 percent stake in the merged company.

Meanwhile, Porsche is in the process of negotiating its own deal with Qatar to deal with its excessive debt. According to Porsche, the deal is in the final stages.

Neither Volkswagen nor the Emirate of Qatar would comment on the reports and Porsche’s public accusations against VW.

Source


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One Response to “Porsche Takes Feud to Media: Accuses Volkswagen of “Extortion””

  1. Golf Variant Experiences » Blog Archive » Porsche Takes Feud to Media: Accuses Volkswagen of “Extortion … on July 14th, 2009 5:09 pm

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