PORSCHE HAS ENTERED talks with the Qatar Investment Authority (QIA) that could lead to the wealthy Gulf state taking a hefty stake in the German supercar manufacturer, alleviating its debt position.
According to British newspaper the Financial Times, sources close to the talks have confirmed that Porsche CEO Wendelin Wiedeking is in discussions with QIA about a possible 25 percent stake in the manufacturer's holding company.
Porsche has found itself in dire straits recently, with its attempted takeover of Volkswagen leaving it some $15.9 billion in debt. Porsche and Volkswagen have since agreed to work to integrate the two manufacturers into one joint company.
The Financial Times said the discussions between Porsche and QIA could lead to a formal announcement within weeks, with QIA previously rumoured to have made a verbal offer of assistance.
An investment by QIA would form part of a $7.9 billion capital raising, part of which will come from the Porsche and Pieche family owners.
Porsche is also seeking a $3.1 billion loan from the German government's economic stimulus program to see the company through its short term operations shortfall. The loan has been discussed with the state-owned KfW bank, but a decision has yet to be reached.
Porsche expects to sell 80,000 vehicles this fiscal year, earning the manufacturer more than $1.2 billion for the year.