FORUMula1.com - F1 Forum

[Selcouth_Feline]

According to some news sources, Porsche were incredibly close to bankruptcy in March and were only saved by a bridging loan from VW. They still require funding to continue operations....is Porsche in serious trouble...?

German magazine Der Spiegel (via The Local) is reporting that times are so tight at Porsche that it actually skirted bankruptcy for three days in March. The German automaker received a 700 million euro loan ($978 million USD) from VW to stay out of trouble, but needs another 2.5 billion euros (nearly $3.5B USD) to stay in business.

So how is the saga likely to end? Christian Breitsprecher, of Oppenheim Research, thinks that Porsche will be forced into raising cash via other, potentially painful, avenues. This could involve a rights issue, but also a sale of assets, perhaps even the whole carmaking business, to Volkswagen. This would leave Porsche as a purely financial entity, holding a sizeable--but not controlling stake--in Volkswagen, which has a blocking shareholder in the shape of the state of Lower Saxony. Volkswagen would be the happy owner of Porsche's operations, sending Porsche's dreams of controlling the merged entity crashing to the ground.

Either way, Volkswagen's ordinary shares, boosted by Porsche's hubristic takeover strategy, will likely slide as the buyout premium evaporates. Warburton expects Volkswagen's ordinary shares to plummet to 65 euros. Porsche's stock is likely to fall as well, given the potentially dilutive or operationally damaging road ahead.

Earlier this month cash-rich Volkswagen said it was suspending merger talks with Porsche due to the lack of a constructive atmosphere and apparent annoyance at Porsche's unclear finances. Porsche had been hoping earlier this year to fulfill its need for cash by holding a joint rights issue with Volkswagen -- but that idea was nixed by Volkswagen. Porsche could hold a rights issue by itself, but that would significantly dilute the stakes of the founding Piech and Porsche families.

I'm fairly confident that Porsche won't go bankrupt, however I will be interested to see how this one plays out.

[Jabberwocky]

In a strange way it would be good if porker went like Rover did by selling the cars for about 20% of its normal price to try and survive. I think I would be making my way to the local dealer if that happened.

I think VAG will buy them. they are just watching the wriggle to get the best price possible.

[darwin dali]

It has always struck me as wrong for Porsche to own Volkswagen - it should be the other way around. And so it will be apparently

[What's Burning?]

BERLIN (AP) — Shares in Volkswagen AG soared higher on Thursday after Europe’s biggest automaker announced a deal to complete the takeover of sports car manufacturer Porsche by the end of the month, which the company said will result in savings of some €700 million ($880 million) per year.

Volkswagen’s shares were up 5.9 percent at €135.75 in Frankfurt trading. The Wolfsburg-based company announced Wednesday night that Porsche will become a fully integrated brand as of Aug. 1 — joining others such as Audi, Volkswagen, Seat, Bugatti, Lamborghini and Bentley.

Volkswagen is to acquire the 50.1 percent in Porsche’s capital that it doesn’t already hold from holding company Porsche SE for €4.46 billion plus one Volkswagen share. The arrangement allows it to book the acquisition as an internal reorganization, which is advantageous in tax terms.

Porsche failed in an attempt to take over the much larger VW in 2009 — loading itself with debt just as the global economy was entering its deepest recession since World War II following the 2008 financial crisis. Volkswagen emerged on top but the companies’ integration had been held up lately by legal issues.

‘‘We will concentrate all our strength on the operative business and the solid, profitable growth of the company,’’ Volkswagen CEO Martin Winterkorn said Thursday, adding that the deal allows the companies to benefit ‘‘earlier than planned from the long-term synergies of about €700 million per year.’’

The chief financial officer, Hans-Dieter Poetsch, said everyone would benefit from the deal because the savings it will produce ‘‘will lead to rising profit and so to rising tax payments.’’

Volkswagen said that integrating Porsche’s highly profitable car business would have a positive impact on its earnings — but for this year, charges will largely offset that impact on operating profit.end of story marker

[Jabberwocky]

In a strange way it would be good if porker went like Rover did by selling the cars for about 20% of its normal price to try and survive. I think I would be making my way to the local dealer if that happened.

I think VAG will buy them. they are just watching the wriggle to get the best price possible.

Looks like you heard it here 1st ladies, gents, and others.

It has also been brought to my attention that Porker is not an acceptable term for Porsche, I whole heartedly apologise for any hurt or upset this has caused to Volkswagon Beetle owners with a couple of 2vc6 engines in the back.

[darwin dali]

In a strange way it would be good if porker went like Rover did by selling the cars for about 20% of its normal price to try and survive. I think I would be making my way to the local dealer if that happened.

I think VAG will buy them. they are just watching the wriggle to get the best price possible.

Looks like you heard it here 1st ladies, gents, and others.

It has also been brought to my attention that Porker is not an acceptable term for Porsche, I whole heartedly apologise for any hurt or upset this has caused to Volkswagon Beetle owners with a couple of 2vc6 engines in the back.

[What's Burning?]

I had my "VW Beetle" up to 125 mph early one morning not too long ago. I didn't have cojones enough to keep the throttle pegged even though the car kept begging for more and begging for faster and begging me not to stop because I was on a public road.

[Jabberwocky]

I had my "VW Beetle" up to 125 mph early one morning not too long ago. I didn't have cojones enough to keep the throttle pegged even though the car kept begging for more and begging for faster and begging me not to stop because I was on a public road.

[myownalias]

I had my "VW Beetle" up to 125 mph early one morning not too long ago. I didn't have cojones enough to keep the throttle pegged even though the car kept begging for more and begging for faster and begging me not to stop because I was on a public road.

Got a Youtube video of that so I can point your flagrant disregard for laws and public safety to the local authorities!

[madbrad]

It has also been brought to my attention that Porker is not an acceptable term for Porsche,

Who told you that?

[What's Burning?]

I had my "VW Beetle" up to 125 mph early one morning not too long ago. I didn't have cojones enough to keep the throttle pegged even though the car kept begging for more and begging for faster and begging me not to stop because I was on a public road.

Got a Youtube video of that so I can point your flagrant disregard for laws and public safety to the local authorities!

That's not the worst of it, it was right after I'd just robbed a bank.

[darwin dali]

It has also been brought to my attention that Porker is not an acceptable term for Porsche,

Who told you that?

A bit harsh

Oink, oink!

[Stealthgate007]

I had my "VW Beetle" up to 125 mph early one morning not too long ago. I didn't have cojones enough to keep the throttle pegged even though the car kept begging for more and begging for faster and begging me not to stop because I was on a public road.

I had the Cayman up to 141 mph.. twas glorious

[What's Burning?]

Interesting read regarding the recent goings on. Porsche, No matter what

[scotty]

Good thing tex isn't about he'd blow a gasket at you guys