After a few years of financial windfalls, Porsche is suddenly in need of plenty of capital. The German automaker already received a 700 million euro ($978 million U.S.) bridge loan from Volkswagen in March to stay out of bankruptcy, and it is reportedly in talks with banks to secure 1.75 billion euros ($2.42 billion U.S.) in financing.
Bloomberg is reporting that Porsche could also be looking for as much as 2.5 billion euros ($3.45 billion U.S.) from the Arab emirate of Qatar to remain independent of the much larger VW. Bloomberg quotes two anonymous sources as saying that the Middle Eastern country is looking for at least a 25% stake in the storied luxury sports car maker. The fresh funding would help Porsche alleviate some of its 9 billion euro ($12.5 billion U.S.) debt, while also giving the Stuttgart automaker some breathing room to stave off future financial meltdowns.
Last week, Automotive News Europe was reporting that Qatar was exploring two options: it could either buy a stake in Porsche Automobil Holding SE (which owns both Porsche's automaking unit and its 51% stake in VW), or purchase Porsche's outstanding options on a 24% stake in Volkswagen. According to the Bloomberg sources, a deal between Porsche and Qatar could be consummated by the end of June.
[Source: Bloomberg | Image: Michael Latz/AFP/Getty]