volkswagen and porsche say no merger in 2011
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Volkswagen and Porsche say no merger in 2011

Arab Today, arab today

Arab Today, arab today Volkswagen and Porsche say no merger in 2011

Berlin - AFP

A merger of German automakers Porsche and Volkswagen will not be completed in 2011 as planned, but the two companies said Thursday they still intend to create a tie-up. The boards of the two companies concluded the merger "cannot be implemented within the time frame provided" due to legal proceedings against Porsche in Germany and the United States for alleged market manipulation, Volkswagen said in a statement. "Nevertheless, all parties remain committed to the goal of creating an integrated automotive group with Porsche and are convinced that this will take place," it added. Luxury sports car firm Porsche stunned the auto manufacturing world in October 2008 when it announced that it had acquired 75 percent of Volkswagen. But the takeover move backfired against the backdrop of the financial crisis as Porsche racked up a nine-billion-euro debt in acquiring a controlling stake in Europe's largest carmaker, and it was Volkswagen that saved the sports car company. However, their merger plans have been frustrated by lawsuits by investors against the maker of 911 sports cars for allegedly causing them to suffer several billion dollars in losses as a result of misleading comments on Porsche's intentions to take over VW. Volkswagen said the legal proceedings "mean that it is currently impossible to quantify the economic risks of a merger and therefore to perform the valuation of Porsche SE required to determine the exchange ratio." Porsche said in its statement that allegations in the lawsuits are "unfounded". It added that the the delay in the merger would force it to book significant writedowns on financial assets that would push it into the red over the first three quarters of the year. Porsche had booked a net profit of 149 million euros in the first half of the year. Despite the accounting setback Porsche spoke of a "continuing positive evolution" of its business.Volkswagen, on the other hand, said a reevalution of the value of stock options due to the delay in the merger "is expected to lead to a clearly positive contribution to Volkswagen AG’s financial result." The company posted a profit of 6.2 billion euros in the first six months of the year. Volkswagen said over the coming weeks its management board would look at other possible ways of merging with Porsche other than via stock options as set out in their current agreement.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

volkswagen and porsche say no merger in 2011 volkswagen and porsche say no merger in 2011

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

volkswagen and porsche say no merger in 2011 volkswagen and porsche say no merger in 2011

 



GMT 06:46 2017 Wednesday ,04 October

Pope to bless icon for Holy Family Journey to Egypt

GMT 15:51 2017 Tuesday ,22 August

FVP informed on arrangements for Sudan in meetings

GMT 04:55 2016 Monday ,03 October

Alec Baldwin nails it as Trump on ‘SNL’

GMT 21:15 2017 Tuesday ,19 September

Security forces intensify their presence in Kirkuk

GMT 03:39 2017 Saturday ,30 September

Al Jawaheri economic improvement

GMT 10:29 2018 Saturday ,06 January

Siniora meets German Ambassador

GMT 06:27 2017 Tuesday ,26 December

Embassy in Russia marks National Days

GMT 19:06 2017 Thursday ,05 January

Moral policing in Maharashtra, too

GMT 11:49 2017 Wednesday ,26 April

OIC Condemns Attack on Military Base in Afghanistan

GMT 18:35 2017 Monday ,27 February

UK foreign secretary leaves Egypt
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday