Analysts at Deutsche Bank said they struggle to find out how Porsche will pay the interest on its 9 billion euro debt load when the group generates little cash. "The rise in net debt is far more important to us, then once again higher non-cash earnings," they said. ___________________________________ My advise : buy Deutsche Bank shares ! That should be enough "cash generation !
Volkswagen AG, Europeâs largest carmaker, cancelled talks with Porsche SE about the merger of the two automakers for an indefinite length of time, citing the absence of a âconstructiveâ atmosphere. âWe want to make it clear that there is currently no atmosphere for constructive talks, and that itâs completely open when talks can continue,â Volkswagen spokeswoman Christine Ritz said today in a telephone interview. âWe are under no time pressure at all.â She declined to comment further. Both companies earlier in the day said a merger meeting due to occur tomorrow had been called off. Stuttgart, Germany-based Porsche, however, also said that talks between the two companies were continuing and further meetings will be held. Volkswagen Supervisory Board Chairman Ferdinand Piech said last week that Porsche must trim debt before it can complete a merger with Volkswagen. Volkswagen âwonât solveâ Porscheâs net debt, which tripled in six months to 9 billion euros ($12.2 billion) as of Jan. 31, Piech said. Porsche owns about 51 percent of Wolfsburg, Germany-based Volkswagen. The Porsche family is upset over Piechâs comments and concerned they may hurt the value of the carmaker, Der Spiegel said on its Web site yesterday, without saying where it got the information. When asked about whether Volkswagen would pay 11 billion euros for Porsche AG, Piech said the figure was âdefinitely a few billion too high,â according to the German magazine. Porsche has fallen 21 percent this year, valuing the company at 7.21 billion euros. Volkswagen has declined 12 percent, valuing it at 69.6 billion euros. Porsche said yesterday it will hold a supervisory board meeting of its own tomorrow. The Piech and Porsche families, who control the maker of the 911 sports car, agreed May 6 to create a combined company with Volkswagen. Porsche workers will hold their first-ever strike tomorrow to protest Piechâs plans for a takeover by Volkswagen, Focus reported yesterday, without saying where it got the information. Porsche spokesman Albrecht Bamler said the situation may become clearer tomorrow. He declined to provide more details.
Power struggle is over. VW wins as Porsche's Board fires the CEO and CFO. http://blogs.edmunds.com/straightli...and-cfo-firings-make-way-for-vw-takeover.html
Germany isn't conservative as people think, they are more of socialist. Porsche picked right/interesting time to help VW avoid being shorted-sell into oblivion. I don't think German government sit there and let it to happen, cause VW is a major source of employment in Germany. Too big to fail, game of capitalism.