New Europe - Europe's biggest automaker Volkswagen will probably complete its takeover of luxury car group Porsche this year after clearing key hurdles, according to a German media previous Sunday, The Local reported on 23 January.
News weekly Der Spiegel wrote in its upcoming issue that VW, which owns 49.9% of Porsche, could buy the 50.1% stake in the manufacturer of the iconic 911 car for € 3.9 billion ($ 5.0 billion) in 2012.
The report cited unnamed VW executives. Porsche has built up massive debts as it looked to seal a tie-up with VW and Der Spiegel said two previous obstacles now look surmountable.
Volkswagen will avoid having to pay more than € 1 billion in taxes for completing the deal before 2014 by creating a holding company to buy and maintain the stake in Porsche, according to the report.
VW would also fulfil Porsche's demands for independence by signing a contract giving the sports car maker control over its investments and models.
