The Porsche Wars: Collateral Damage
Despite the fact that the German manufacturer tried to reassure everybody that its business is still generating money, needed to make interest payments on the 9 billion euro net debt, Der Spiegel reported that Porsche is in talks with German state bank KfW about a 1 billion euro loan. Porsche declined to comment, saying only it does not "name the banks with whom we negotiate."
The non-voting stock of the company fell by 9.3 percent, standing at 39.7 euro early this morning. The tendency to decreased stopped by afternoon, as shares grew back to 41.05 euro, according to Financial Times.
Volkswagen decided to stop talks with its major shareholder in order to get a better picture of what happens within Porsche. Volkswagen's CEO, Martin Winterkorn said: "We must get a clear idea of the true state of affairs at Porsche. We need absolute transparency with regard to the present situation."
"It is in the interest of all concerned, our employees, all shareholders and our customers to ensure there is no threat to Volkswagen's financial stability and autonomy," the CEO added. "We recognized at the end of the week that Porsche is lacking several fundamental conditions for the discussions," a spokesman for Volkswagen said earlier today.
On the Porsche side of the barricade, no official word. The company limited itself at saying that only today's meeting was cancelled and the overall talks to create a joint company will not be affected.