High Stakes Porsche Poker

Bertel Schmitt
by Bertel Schmitt
high stakes porsche poker

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.”

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  • Tassos BTW I thought this silly thing was always called the "Wienermobile".
  • Tassos I have a first cousin with same first and last name as my own, 17 years my junior even tho he is the son of my father's older brother, who has a summer home in the same country I do, and has bought a local A3 5-door hatch kinds thing, quite old by now.Last year he told me the thing broke down and he had to do major major repairs, replace the whole engine and other stuff, and had to rent a car for two weeks in a touristy location, and amazingly he paid more for the rental ( Euro1,500, or $1,650-$1,700) than for all the repairs, which of course were not done at the dealer (I doubt there was a dealer there anyway)
  • Tassos VW's EV program losses have already been horrific, and with (guess, Caveman!) the Berlin-Brandenburg Gigafactory growing by leaps and bounds, the future was already quite grim for VW and the VW Group.THis shutdown will not be so temporary.The German Government may have to reach in its deep pockets, no matter how much it hates to spend $, and bail it out."too big to fail"?
  • Billccm I had a 1980 TC3 Horizon and that car was as reliable as the sun. Underappreciated for sure.
  • Inside Looking Out I did not notice, did they mention climate change? How they are going to fight climate change, racism and gender discrimination. I mean collective Big 3.