17 Aug 2009

Qatar buys stake in Porsche

4:22 pm on 17 August 2009

Gulf state Qatar has agreed to take a stake in German car-maker Porsche, and will become its third-biggest shareholder.

Qatar will buy 10% of the shares held by the family that controls Porsche, taking a voting stake.

The deal is part of an agreement between Volkswagen and Porsche under which they will merge by 2011, ending months of bitter feuding.

Under the merger deal, VW will initially buy a 42% stake in Porsche by the end of this year, for 3.3 billion euros.

Over the past year, Porsche built up huge debts to get a 51% stake in VW, only to fall short of the required 75% when it could not raise more funds.