Tax liabilities of £2.5 billion could scupper takeover
21 July 2009

VW's takeover of Porsche would be scuppered by tax liabilities, according to a German newspaper.

The Sueddeutsche Zeitung newspaper quoted Porsche sources as saying that taxes of 3 billion Euros (£2.5 billion) that would go along with any takeover could become a deal-breaker.

Twitter - follow

The news follows reports that Ferdinand Piech is putting immense pressure on the Porsche family to sell a majority of its shares to VW and fire company boss Wendelin Wiedeking, a move which is likely to cost around £80 million in severance pay.

Porsche and Volkswagen declined to comment on the report. Both companies have scheduled board meetings this Thursday, with the fate of Porsche set to be decided then.

Insiders say VW wants to buy a 49.9 per cent stake in Porsche immediately, with an agreement to acquire the rest at a later date.

Porsche is reported to have debts of 14 billion Euros (£12 billion) at present, which it picked up in its abortive attempts to take over VW last year.

The news of the tax liabilities sent VW and Porsche shares plunging nine per cent and eight percent respectively.

See all the latest Porsche reviews, news and video

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Ford Mustang
    First Drive
    24 March 2018
    Sixth-generation Mustang gets a leaner face, revised suspension, improved safety equipment and a more power V8. We see how it fares on southern French roads
  • First Drive
    23 March 2018
    Fully-loaded, big-hitting diesel CLS shows the potential perils of ticking too many options boxes on your order form. A good car with a bad suspension combination.
  • BMW M5
    First Drive
    22 March 2018
    Super saloon deploys four-wheel drive to improve every facet of its driving experience. Faster and more capable than any, and more exciting than most, of its celebrated predecessors
  • Range Rover Sport SVR
    First Drive
    22 March 2018
    More power and an intoxicating soundtrack have breathed new life into our love affair with the biggest, baddest Range Rover Sport variant
  • First Drive
    21 March 2018
    The new Vantage has been developed as a Porsche 911 beater, and our first taste on UK roads suggests it can live up to that bold claim