Tuesday, July 28, 2009

BREAKING : Porsche CEO and CFO quit, company moving ahead with VW merger

Looks like the people with big-suits at Porsche are leaving the building. A reports came in from Reuters that Porsche CEO - Wendelin Wiedeking, and Porsche finance chief (CFO) - Holger Haerter, have resigned and will be leaving Porsche as early as next week.

The move was said to clear the way for Porsche to merge with VW and provide some relief for Porsche's balance sheet. After the same meeting that decided Wiedeking's fate, Porsche announced that it planned to increase its capital by €5 billion (about $7.1B U.S.).

On the other side though, the Piech and Porsche families, which control Porsche, said they will move forward with the proposal to sell some stake to Qatar. Nonetheless, Volkswagen are also looking to raise $5.7 billion in-finance, ahead of taking-over Porsche to protect its credit ratings.

So along with Wiedeking's resigning, who opposed the merger earlier, the long-awaited Porsche-VW merger is coming to a close point.

Source : [Reuters]

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