Share |

Porsche looks to Qatar’s sovereign wealth fund

Luxury carmaker Porsche is in exclusive talks with the Qatar Investment authority about the sale of a minority stake in the family-owned company, it has been revealed. After a German magazine first reported the story yesterday, a Porsche spokesman has now confirmed to Bloomberg that discussions are underway. It is understood that QIA is eyeing a 25% stake.

The deal would help Porsche out of a hole. It is looking to reduce its €9 billion debt pile and could potentially resurrect its ambition to takeover rival Volkswagen in which it has built up a majority stake.

In early May the Porsche and Piech families agreed to merge Porsche and VW into an integrated car manufacturing group after Porsche had to give up on its first aim of taking over its larger competitor. The agreement seemed to close the family rift that had seen Porsche supervisory board chairman Wolfgang Porsche pitted against relation Ferdinand Piech, chairman of VW.

Although rumours emerged that the merger talks had stalled, Porsche issued a statement to the contrary and discussions have been ongoing. The QIA interest could now significantly strengthen Porsche's hand, although it has been reported that VW would also welcome the investment.

The QIA was formed in 2005 and is run by the Emirate's ruling Al-Thani family. It is estimated to hold in excess of $60 billion of assets.

Click here to take the new Campden FB/Mishcon de Reya survey on the impact the current economic turmoil has had on families in business attitudes to the future of their businesses.

Related link
Sovereign wealth funds: a financial heavyweight

Click here >>