Qatar Sells Half of VW Shares

In an alleged attempt to increase the liquidity of the company, Qatar Holding, the investment group of the Qatari state, announced it has sold half of its Volkswagen preference shares, managing to raise 1.5 billion euros for them. For the rest of the shares, Qatar greed to a lock-up period until the end of the year.

"Qatar is exhibiting exit strategies akin to a private equity fund that makes wise profits and knows when to cash in," John Sfakianakis, Banque Saudi Fransi-Credit Agricole chief economist was quoted as saying by Autonews.

"It has shifted its investment interests as market dynamics change, and that is what they are doing now."

Still, Qatar also announced plans to increase its voting holding in Volkswagen, in an attempt to become the third-largest voting stake in VW. The news was not commented upon by Volkswagen representatives.

On the German front, Volkswagen is planning a huge capital increase to support its efforts to take over Porsche. The increase will be done by issuing 135 million new non-voting preferred bearer shares against cash contributions.

The first stage of the increase will take place in the first half on 2010. In addition, VW will also ask its shareholders to decide whether the State of Lower Saxony is to receive two of the Supervisory Board seats.

“The envisaged capital increase is to secure refinancing of the planned participation in Porsche AG and therefore represents a milestone on the way to an integrated automotive group with Porsche,” the manufacturer said in a release.