By on July 22, 2009

In a surprise announcement, Porsche Automobil Holding SE said early Thursday morning that its supervisory board approved a capital increase of at least €5 billion as part of a move toward forging a combined company with Volkswagen AG,  Automobilwoche [sub] reports.

The capital increase can be “in cash and/or a contribution in kind.  According to Automobilwoche, this move indicates that Wiedeking is on the way out, and that a merger with Volkswagen  is close.

However, at 3 a.m. in the morning, the supervisory board also announced that it authorized Porsche’s to conclude negotiations with the Gulf state of Qatar over an investment in Porsche, Reuters reports.

At the time of this typing, the nightly supervisory board meeting was still ongoing.

It is currently unclear how this will pan out. However, most observers think that Volkswagen will swallow Porsche instead of Porsche swallowing Volkswagen.

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