Porsche may take $7 billion hit on VW options sale

Porsche Automobil Holding on Wednesday said it will take a hit of up to 5 billion euros ($7 billion) before tax as it sells options on Volkswagen shares.

Porsche /quotes/comstock/11e!fpah3 (DE:PAH3 43.80, -0.31, -0.70%) said it's in advanced talks with "one or several investors," including Qatar Holding, about selling its options in Volkswagen /quotes/comstock/11e!fvow (DE:VOW 241.43, -13.57, -5.32%) /quotes/comstock/11e!fvow3 (DE:VOW3 54.73, -0.37, -0.67%) .

Porsche's strategy of buying up options in Volkswagen has netted it a 50.76% stake in VW, and options for roughly another 20% of Wolfsburg-based automaker.

But the options also have led the company into debts of at least 9 billion euros, and possibly more, and the company is in talks to effectively be taken over by VW.

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- Posted: 2009-07-29 13:49:58

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