Porsche says 4 weeks is too quick to decide on VW merger

Porsche will take longer than expected to reach a merger agreement with Volkswagen, a Porsche spokesman said on Friday.
 
Porsche Automobil Holding SE on May 6 said it set a four-week deadline for presenting the outlines of a possible merger deal with Volkswagen AG, in which it owns nearly 51 percent.
 
After a squabble between the two groups, VW and Porsche on May 19 reiterated they were back on track to create an "integrated company."
 
But negotiations look to drag on longer than expected, the company said. "Four weeks probably won't be long enough" to present a merger outline, the Porsche spokesman said.
 
Although Porsche's plans to continue talks are "unchanged" it would take longer than the "initial time limit," the spokesman said.
 
A spokesman for Volkswagen said: "We cannot give a specific date regarding completion of any agreement."
 
Porsche's debt burden forced it to drop plans for a full takeover of VW and instead seek a merger with Europe's biggest carmaker.
 
In March Porsche tried to put together 12.5 billion euros ($17.23 billion) in loans to refinance its debt, but only managed to get 10 billion.
 
On Friday a spokesman said Porsche had raised an additional 750 million euros in the meantime, but is still seeking to raise the remaining 1.75 billion euros.
 
Porsche could not say by when it would raise the remaining amount, but said it was not dependent on external financing until March 2010.
 
Porsche is still seeking an outside investor and has said it is in "promising talks" without elaborating on details.
From: Automotive News Europe

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