High Stakes Porsche Poker

Bertel Schmitt
by Bertel Schmitt

Wendelin Wiedeking has his deal with the Sheik of Qatar. The Sheik of Qatar wants to put down €7B for 20 percent of the Porsche Holding, and for their option package that buys the Sheik 20 percent of Volkswagen. “The deal has been finalized,” Automobilwoche [sub] heard from usually indiscreet German bankers.

The Sheik’s money would nearly wipe out Porsche’s debt load, leaving only €2B to pay off. It would also mean the end of more profits than sales through derivatives, and the end of Wiedeking’s dream to get more than the 51 percent of Volkswagen Porsche currently owns. Under the deal, the Sheik would own 20 percent of Volkswagen directly, and he would own indirectly 20 percent of the 51 percent Porsche owns. Still with us?


The deal may be finalized. But it isn’t closed yet. There still is the extraordinary supervisory board meeting, scheduled at Porsche for July 23.

At that meeting, board members will decide whether to approve the Sheik’s deal, or whether 49 percent of Porsche will be sold to Volkswagen. Anybody who follows the trials and tribulations of PJ O’Rourke’s favorite car maker has noticed that the Sheik raised his initial offer of €5B to €7B.

“Kein Problem” was the answer from Wolfsburg. According to Der Spiegel, Volkswagen now offers “substantially more than €4B” for 49.9 percent of Porsche. The magazine Focus consulted their CPA and he calculated that after taxes, the Volkswagen deal would bring a billion more into Porsche’s kitty than than the Sheik’s new offer. Also, it might sit better with Ferdinand Piech, who also sits on the Porsche board. Lower Saxony would also be pleased. Everybody except Wiedeking seems to like the Volkswagen offer. The Sheik could get a piece of the pie also. Lets not forget, he would need extra money to exercise those Volkswagen options.

“Whether Wiedeking’s future will be discussed at the meeting is unknown,” write the masters of insinuation at Der Spiegel. “There are rumors after rumors that Wiedeking will go shortly after Porsche’s matters have been settled.”

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • ToolGuy North America is already the greatest country on the planet, and I have learned to be careful about what I wish for in terms of making changes. I mean, if Greenland wants to buy JDM vehicles, isn't that for the Danes to decide?
  • ToolGuy Once again my home did not catch on fire and my fire extinguisher(s) stayed in the closet, unused. I guess I threw my money away on fire extinguishers.(And by fire extinguishers I mean nuclear missiles.)
  • Carson D The UAW has succeeded in organizing a US VW plant before. There's a reason they don't teach history in the schools any longer. People wouldn't make the same mistakes.
  • B-BodyBuick84 Mitsubishi Pajero Sport of course, a 7 seater, 2.4 turbo-diesel I4 BOF SUV with Super-Select 4WD, centre and rear locking diffs standard of course.
  • Corey Lewis Think how dated this 80s design was by 1995!
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