Porsche Losses 4.4 Billion Euros in 2008-2009

German Automaker Blames Negative Write-downs in VW Stakes

Summary: Porsche, one of the world’s most popular luxury and sports car manufacturer, on Thursday said that it has loss some $6.5 billion or an equivalent of 4.4 billion euros worth of pre-taxes for its 2008-2009 financial year.

The car company has blamed the negative write-downs for the result, which has stemmed from the foiled VW takeover.

German automaker Porsche reported on Thursday a $6.5 billion or 4.4-billion euros pre-tax losses in its 2008-2009 financial year blaming negative write-ups that stemmed from the foiled Volkswagen stakes.

In a statement, Porsche said that the massive loss has affected its operations despite making more than 8.6 billion euros in the previous year.

It will be recalled that Porsche has failed to take over VW despite positive reports by the media.

The carmaker had eyed the buyout of its far bigger German rival by taking cash settlement options with its VW shares in a bid to takeover the latter.

Based on the guidelines, owners of such options will receive the difference of their shares’ cash value and the actual price after they have exercised their options.

However, Volkswagen later had the upper-hand when Porsche sold its sale options to Gulf Emirate of Qatar. VW upon knowing that the luxury carmaker now has a lower share announced plans to buy the auto company in September.

Gulf Emirate, on the other hand, now has some 17 percent stake in VW-Porsche.

Based on the documents, Porsche was able to acquire the options from banks at a level high above that of the stock markets. The stock markets were the ones that determine the price of the options at the time of the sale.

Porsche Losses 4.4 Billion Euros in 2008-2009

German Automaker Blames Negative Write-downs in VW Stakes

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