15 Aug 2009

Qatar buys stake in Porsche

2:34 pm on 15 August 2009

The Gulf state of Qatar has agreed to take stake in German carmaker Porsche, as part of a deal between Volkswagen and Porsche under which they will merge by 2011.

The BBC reports that Porsche shares gained 8% to 48.50 euros following the news that Qatar would will buy 10% of the shares held by the family that controls Porsche, taking a voting stake.

Qatar will eventually become the carmaker's third biggest shareholder, after the Porsche and Piech families and the German state of Lower Saxony.

As part of the terms of the deal, Qatar will also buy the stock options gives the Gulf state the rights to a 17% stake in Volkswagen that was agreed last week.

Shares in VW dropped 15% to 192 euros, the lowest in over a year.