According to the German news paper Der Spegel, Volkswagen is going to buy Porsche which is currently suffering from a financial crisis. Porsche is having problems because its over ambitious plans to buy Volkswagen which was financed using loans and credits. According to the same paper Porsche almost went bankrupt because of liquidity problems.
Apparently Volkswagen is planning to buy Porsche in two transactions of 50% of the shares each. If Volkswagen manages to buy Porsche it will be its 10th brand.
Volkswagen will pay Porsche 8 billion Euros which will solve Porsche's debts and is also planning to buy its Salzburg based dealerships which will take the figure up by 3 billion Euros.
The deal involves Porsche and Piech families to acquire 50% of the shares of the new company.
[Source: Der Spiegel]
