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VW, Porsche deal hits more snags

Posted Tuesday, Jul 21, 2009, 11:11 am in Employee News

Potential tax liability and tension between the two companies are being cited as complications in Volkswagen’s bid for Porsche’s auto business, according to a story in the Wall Street Journal.

The story says the two companies tried unsuccessfully over the weekend to find a way around a tax payment that could be triggered by the sale, which is the centerpiece of a complicated three-way deal also involving Qatar.

If unsolved, the issue could end the deal, forcing Porsche to find another solution to its liquidity problems, the story claimed.

A VW spokesperson, however, disputed the significance of the tax issue, calling it “a transparent maneuver to torpedo a sensible business idea.” (The Wall Street Journal)
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