Volkswagen and Porsche

Odds on a merger anytime soon have declined sharply, even if this remains management’s preferred option. So far, all is indecisiveness
With the merger now on hold due to legal and tax hurdles, VW is considering a back-up plan to exercise options as early as 2012 and buy a further 51 per cent of Porsche’s car business for €3.9bn
The German carmaker is likely to acquire the other half of the sports car maker’s business that it does not own
Europe’s biggest carmaker by sales says legal proceedings and actions in the US and Germany will delay integration of the sports car maker
Carmakers to hold extraordinary shareholder meetings to seek approval for integration despite legal and tax issues
The German sports car maker said at the weekend that a syndicate of banks had offered to underwrite the new shares at a price of €38 a share
The sports car maker is to push ahead with plans to raise €5bn in badly needed fresh capital, in spite of recent market turmoil triggered by the Japanese crisis

Odds on a merger anytime soon have declined sharply, even if this remains management’s preferred option. So far, all is indecisiveness
Emerging strongly from the recession, Europe’s biggest carmaker is well placed to become world leader – but what still hampers it is emblematic of constraints on German industry
German carmaker’s convoluted merger with Porsche moves a step closer
There is hidden value behind all the corporate manoeuvrings as shown in the robust hallfway operating profit from Porsche’s sports car division
As the Porsche-VW operation, one of the world’s most colourful corporate sagas, appeared to reach its climax, the central character appeared as cold-blooded as ever

The dismissal of the chief executive and a debt burden of €10bn does not necessarily represent a defeat for the German carmaker
Carmaking: Behind a tussle between VW and Porsche for the upper hand in a prospective tie-up lie a tangle of family shareholdings and a feud that could yet bring further trouble
Carmaking: In an industry where founding families retain much of their influence, recession is prompting them to weigh the need for mergers against the benefits of continued control