In an odd twist, luxury sportscar maker Porsche Automobil Holding SE has been turned down for a car loan because of its credit. With its long-running quest to take over Volkswagon AG draining its cash reserves, Porsche had asked the German government for a $2.43 billion loan, but was rejected Monday according to the
Financial Times.
The carmaker still has some irons in the fire though. It's in talks with Middle Eastern sovereign wealth fund Qatar Investment Authority about
taking a $3.45 billion stake in the company. And a report in Manager Magazine says Porsche is chatting with German rival Daimler AG about a potential investment.
Increasingly, the Volkswagen takeover is becoming a headache for Porsche. At one point, Porsche reported $9 billion in
windfall profits on the shares and options it held on Volkswagen's stock. But now it may be forced to either buy the shares at an inflated price or write off the cost of the options while weathering a steep decline in VW shares as banks unwind the positions. -
George White See FT story (subscription required)
See Dealscape post on Porsche/QatarSee Dealscape post on Porsche's windfall profits
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