Volkswagen AG's supervisory board signed off on contracts drafted for a takeover of Porsche SE in stages, clearing the way for Europe's largest automaker to add the 911 sports car to its model lineup.
The company's supervisory board approved contracts of implementation relating to the comprehensive agreement with Porsche, it said in a statement on its Web site. These contracts "specify the binding provisions governing the organizational, structural and legal details of the union between the two companies," it said. Porsche will meet today to discuss the contracts, it also said.
The approval of legal merger documents will allow Volkswagen to proceed with buying Porsche's automaking division. The Wolfsburg, Germany-based carmaker said on Oct. 20 that it will pay 3.9 billion euros ($5.8 billion) for a 49.9 percent stake in the Porsche unit by the end of this year in the first phase of a combination to be completed by 2011.
Porsche's supervisory board, including members of the Porsche and Piech families that control the Stuttgart, Germany- based company, plans to meet in Wolfsburg, also to approve the contracts, said Albrecht Bamler, a spokesman. Ratification will allow Volkswagen Chief Executive Officer Martin Winterkorn to run Porsche's holding company and Chief Financial Officer Hans Dieter Poetsch to take a seat on the management board.
"Volkswagen is moving forward in its quest to become No. 1 in global auto building," said Stefan Bratzel, head of the Center of Automotive Research Institute in Bergisch-Gladbach, Germany, before the VW board met. "This merger implies enormous synergies."
Four-Year Feud
Winterkorn has a target for VW to overtake Toyota Motor Corp., the world's biggest automaker, in deliveries and profit margins by 2018. Porsche will become the 10th brand at VW, which also owns the Audi luxury division in Germany as well as sports- car maker Lamborghini in Italy and Crewe, England-based Bentley.
Volkswagen and Porsche agreed in August to merge, ending a four-year feud for control. The combination involves an investment by Qatar, which has bought 10 percent of the voting rights in Porsche and will eventually own 17 percent of the merged carmaker.
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