VW poised for Porsche buy-out

The Volkswagen supervisory board is due to discuss completing the buy-out of Porsche AG on February 14, according to reports from Germany.

VW already owns 49.9 percent of Porsche and, according to the reports, it is preparing to purchase the other 50.1 percent. German magazine Der Spiegel says VW will pay £3.2billion (Rs 2596 crore) ‘plus taxes’ for the stake, the same price it paid in December 2009.

VW first stepped in when Porsche’s parent company was close to collapse in the wake of the credit crunch and Porsche’s attempt to takeover VW itself.

Under the ambitious leadership of Wendelin Wiedeking, Porsche had tried a reverse takeover of VW, building up a 50 percent stake in the giant carmaker before the slump took hold, leaving Porsche AG with massive debts.