Porsche backing off from taking majority stake in VW this year

Looks like Porsche won't be feasting on more shares of VW for Thanksgiving. Porsche has apparently decided to postpone its move to buy a majority stake in Volkswagen due to the global economic crisis. CEO Wendelin Wiedeking said he still wants that 75% share of VW, but that it's just too difficult at the moment. It doesn't help that VW shares are trading for "economically ridiculous" prices according to Porsche finance chief Holger Haerter. Porsche shares are trading at 57.261 euros, while VW was up 12.2 percent to 286.0 euros. Porsche told us last week in L.A. that it's vulnerable to the current slump in demand and that they expect 2009 to be a slow year. Controlling Volkswagen's movements and profits could help Porsche stay in the black over the next year, but it would simply be too risky right now.

[Source: Automotive News - Sub. Req.]