Qatar comes to Porsche’s rescue, say reports

The heavily-indebted sports car maker Porsche looks to have found a knight in shining armour in the shape of the Gulf state of Qatar. According to German press reports, the Qatar Investment Authority is to inject seven billion euros into the firm.

Such a move would help Porsche win a boardroom battle with fellow German car manufacturer Volkswagen. It would also mark a victory for Porsche’s Chief Executive Wendelin Wiedeking who has been in talks with Qatar for some time.

Porsche and Volkswagen have been vying to take each other over for months. Porsche already owns about 51 percent of its rival. And banking sources quoted in the German media say that, under the deal, Qatar has also bought part of Porsche’s VW stock options.

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tags: Cars, Qatar