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VW/Porsche talks back on
26 May 2009
Merger talks between Porsche and VW are back on, according to reports.
A link-up has been rumoured ever since it became clear Porsche had over-extended itself trying to takeover VW, racking up nine billion Euros (£8 billion) of debts. As a result of the heavy bank debts it built up borrowing money to buy VW shares, it has sought a partnership with VW.
However, talks between the two sides broke down, with VW saying Porsche's debts and lack of restructuring plans made it too risky to merge with.
Late last week Wolfgang Porsche and Ferdinand Piech, chairmen of Porsche and Volkswagen respectively, indicated the talks would now resume.
The two companies issued identical statements, which simply read: “Both companies will advance efforts toward this goal in a constructive way and in mutual agreement with all the parties concerned.”
Richard Webber
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