Porsche is driving ahead with €5bn stock sale to cut its €6.3bn debt pile
PORSCHE, the sports-car maker that plans to merge with Volkswagen, said a timetable to sell €5bn in shares still stands amid the volatile financial markets following the Japanese earthquake.
"One would probably select an environment that's different to the current one" to carry out a sale, CFO Hans Dieter Poetsch said yesterday at a press conference in Stuttgart, Germany. That said, there is "no reason to depart from the original plan".
Porsche, which plans to complete the sale by May 30, aims to cut debt to about €1.5bn with the proceeds. Net debt at Porsche's holding company was €6.34bn at end 2010.
The two carmakers agreed to combine in August 2009 after Porsche racked up more than €10bn of debt in an unsuccessful attempt to gain control of VW. Porsche chief Matthias Mueller (left) and VW chief Martin Winterkorn pose yesterday in a 911 Carrera sports car. (Bloomberg)