Qatar sale will help Porsche cut debt

PORSCHE is aiming to use a capital increase and the sale of a stake to Qatar to cut its net debt, which has ballooned to more than €10bn (£8.6bn).

Qatar and the two families that control Porsche were last night poised to pump around €5bn into the company via a capital injection, helping offset debts which have risen from €9bn at the end of January.

Qatar would get voting shares in Porsche through the capital increase, while the families would receive voting shares as well as non-voting preferred shares in the company.

The capital hike plan is part of a plan drawn up by Porsche chief executive Wendelin Wiedeking. The luxury carmaker was also yesterday forced to deny press reports that Wiedeking was stepping down.