Porsche's squabbling owners are set to discuss an investment by Qatar in the next two weeks, a milestone which could change the dynamics of a Porsche/Volkswagen merger, people close to the talks said.
A decision on Qatar's entry may come even before key family members are set to gather at a Volkswagen supervisory board meeting on July 15, and a day later for the centenary celebrations at VW unit Audi, the people said.
Spokesmen for Porsche and VW declined to comment.
A successful investment from Qatar could strengthen Porsche Chief Executive Wendelin Wiedeking's negotiating hand as he tries to strike a deal with VW.
Without it Porsche will struggle to prop up its finances and may have little choice but to succumb to a reverse takeover from VW, Europe's biggest carmaker.
Porsche, which owns 51 percent in VW, is seeking an outside investor after amassing 9 billion euros ($12.62 billion) in debt during a bungled attempt to dominate Volkswagen.
Struggling under the debt, Porsche was forced to abandon efforts to raise its VW stake to 75 percent and is now seeking to bolster its finances before negotiating a deal to form an "integrated" company with VW.
Porsche's chances of setting the terms of any deal are looking slim. Wiedeking has so far failed to secure 1.75 billion euros in loans it wants from commercial banks or from KFW, a state-controlled bank in Germany.
He is pinning his hopes on striking a deal with Qatar but his plans may be scotched by Porsche's owners and by VW's ability to set the terms of a deal.
Qatar "could help Porsche avoid a bigger financial problem," Credit Suisse analyst Arndt Ellinghorst said. "But ultimately any deal has to be supported by VW and Lower Saxony."
Lower Saxony, VW's home state, is VW's second-biggest shareholder with a blocking minority stake of around 20 percent.
Porsche is heavily dependent on Volkswagen, making it hard for the Stuttgart-based auto maker to walk away from a deal.
Volkswagen is one of Porsche's most important suppliers, delivering or assembling components for a third of all Porsche cars, including the body and engine for the four-door Panamera and Cayenne offroader models.
Porsche is also financially dependent on VW after receiving a 700 million euro loan to help pay down its debt.
Porsche has said it is close to securing an investment from Qatar. But a deal hasn't been signed, mainly due to uncertainty over whether the clans that own Porsche would for the first time cede voting rights to an outsider, one source said.
