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Porsche rejects Volkswagen’s investment bid

Porsche has rejected Volkswagen AG’s bid to take a 49 percent stake in the sports car maker, a company spokesman said Monday.
/ Source: The Associated Press

Porsche has rejected Volkswagen AG’s bid to take a 49 percent stake in the sports car maker, a company spokesman said Monday.

Porsche Automobil Holding SE spokesman Albrecht Bamler said the offer by VW “is not a viable option.”

Debt-laden Porsche, based in Stuttgart, has been holding talks with a Qatar state investment fund on a possible investment.

Porsche confirmed earlier this month that it is in exclusive talks with the Qatar Investment Authority — the primary investment vehicle of the small, energy-rich state.

Bamler said that for VW to take a stake in Porsche, the Wolfsburg-based automaker would have to take out credit worth euro10.75 billion ($15.15 billion).

Porsche holds a roughly 51 percent stake in Volkswagen, but ran up hefty debts in accumulating that holding and is now seeking a merger with the larger company. Exactly how that is to happen remains unclear.