Porsche approves $7.1 billion cash infusionJuly 23rd, 2009 - 11:57 am ICT by IANS
Berlin, July 23 (DPA) The supervisory board of German carmaker Porsche early Thursday approved a 5 billion euro ($7.1 billion) capital increase that could clear the way for a takeover by Volkswagen.
The announcement came after a several-hour closed-door meeting to reach an agreement on the future of the iconic sports car maker.
Porsche chief Wendelin Wiedeking had turned to the carmaker’s family owners for help in refinancing Porsche’s 10 billion euro debt through the capital injection of up to 5 billion euros. The infusion is a precondition for an anticipated merger with Volkswagen.
Further details of the board’s decision were not yet known.
Company sources have not ruled out that 56-year-old Wiedeking could soon step down. The Volkswagen board is to meet separately Thursday to discuss the future of the two carmakers.
In planning to take over Porsche in two steps, Volkswagen turns the tables on Porsche, which has been forced to abandon a push to acquire VW.
This came after Porsche wracked up debt of about 10 billion euros in gaining a majority stake in VW, Europe’s biggest carmaker.
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