Sports Car Manufacturer Porsche SE is close to reaching an agreement with Volkswagen AG with regards to a merger.  CEO Wendelin Wiedeking has sain recently in an interview “I think all the details, later on within the next days” will be resolved.  Wiedeking has said that the deal to sell Porsche to Volkswagen “its already on the table” meaning the sale is very close to agreements.

Qatar Investment Authority has put an offer to buy a stake in Porsche’s holding company and options in Volkswagen stock.  Porsche currently has a 51% stake in Volkswagen which has put them in 9 billion Euros worth of debt. 

Juergen Meyer a portfolio manager at SEB Asset Managment firm in Frankfurt has been quoted saying “The most reasonable solution would be that Porsche sells its call options on Volkswagen shares to Qatar and Volkswagen acquires a stake or 100% of Porsche’s car business”.

Cheif Executive Officer Wiedeking became CEO in 1993 and has transformed the company of the 911 and the Cayenne, which when he started the manufacturer was almost bankrupt.  He has turned the company around into the industry’s highest profit margin company.  In was’nt until 2005 he began using cash from the business to buy shares in Volkswagen, a company that builds more cars in a week than Porsche does in a year.

The family owners and Qatar have been asked to participate in a planned five billion euro share sale at Porsche, people familiar with the talks said this week.  Qatar may pay 2 billion euros for a stake, one of the peoples said.

If Persian Gulf were to invest this would leverage to negotiate a deal to merge with VW.  An agreement between the families earlier this year in May with VW to pursue a merger to create a 10 brand behmoth that would include Audi luxury division of VW as well as the Skoda and Seat mass market units.