Porsche seeks funds after failed deal
TEXT OF STORY
Bill Radke: Automaker Porsche says it’s looking for an outside investor. The company needs help after its merger deal with Volkswagen fell apart. From our European Desk, Stephen Beard reports.
Stephen Beard: One German newspaper calls this a modern-day version of David and Goliath. Only this time, David lost the battle.
First, the much smaller company Porsche tried to takeover over the giant Volkswagen and failed. Then, the two companies agreed to merge instead. But that fell apart when they couldn’t agree on who should should wind up in the driver’s seat.
This leaves Porsche with a problem: The company borrowed more than $12 billion to buy a major stake in Volkswagen.
Howard Wheeldon is with the BGC group. He says the sports car company now needs the support of an outside shareholder:
Howard Wheeldon: Over the next few years, we will see a separation rather than a combination here. Porsche will go out and they will try and refund and do things in a different way.
Wheeldon says it’s likely that the company will look to a sovereign wealth fund in the Middle East for new capital.
In London, this is Stephen Beard for Marketplace.
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