📰 Auto News Report: Auto Union could be reborn out of VW-Porsche merger

[Mook]

In yet another strange twist of fate to the whole Porsche buys Volkswagen buys Porsche saga, the Auto Union name could end up being revived as a name for a combined company. The two companies have reportedly come to terms on a value for what the car business of Porsche AG is worth and a deal could soon be consummated. The VW supervisory board is expected to meet today to decide on moving forward with an acquisition valued at €8-11 billion.

Auto Union is best known for the remarkable grand prix cars that wore the four ringed badge in the 1930s. The all-wheel-drive monsters were designed by Ferdinand Porsche (the original) for the company born of the merger of Audi, Horch, DKW and Wanderer. That same Dr. Porsche, of course, is publicly credited (although disputed) with developing the original Volkswagen. Eventually, all of Auto Union but the Audi brand faded away by the late 1960s, but the VW-owned company retained the icon.

Complete integration (or assimilation) of the companies is expected by late 2011 with current VW CEO Martin Winterkorn at the helm.

[Autoblog]

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[Mook]

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Hunting for big game can be a tricky business. The saga of Volkswagen and Porsche appears as though it may soon draw to a close with the hunter being swallowed by its prey. At a special meeting of the Volkswagen supervisory board on Thursday, an agreement was approved that will ultimately lead to assimilation for Porsche.

Currently, Porsche SE holds a bit over 50 percent of Volkswagen's common shares along with options for another 20 percent. Porsche will start off by negotiating to sell those options to the Emirate of Qatar for an undisclosed sum. Once that deal is done, Volkswagen will buy 42 percent of Porsche AG (the car making business) before the end of this year. Volkswagen will pay €3.3 billion for that stake.

VW will pay another €3.55 billion for Porsche Holding Salzburg, a trading company owned by the Porsche and Piech families. Ultimately, by the end of 2011 as Porsche SE reduces its debt load with all of this new cash, Volkswagen and Porsche will merge into a single company.

That is if all goes according to plan. What could possibly go wrong?