Qatar may raise stake in VW after Porsche merger image

Qatar wants to increase its stake in Volkswagen AG after the German carmaker completes its takeover of Porsche SE, an executive at the emirate’s investment agency board said.

If they give me the opportunity, I will,” Hussain Al- Abdulla, a Qatar Investment Authority board member, said today in an interview at the Doha Business Roundtable, when asked whether the emirate plans to expand its holding after the German manufacturers combine.

Volkswagen, Europe’s biggest automaker, rose to a 12-day high in Frankfurt trading. Qatar already has 10 percent of the voting rights in Porsche, the maker of the 911 sports car, and options that will give the Persian Gulf state 17 percent of Wolfsburg-based Volkswagen as part of the carmakers’ merger agreement last month.

“The holding may eventually reach about 20 percent, but I can’t imagine they’d seek anything larger,” said Tim Schuldt, an analyst at Equinet AG with a “sell” recommendation on VW stock. “What matters is that Volkswagen is in safe hands, with a clear shareholder structure.”

VW will pay about 3.3 billion euros ($4.8 billion) in the transaction’s initial stage for 42 percent of Stuttgart-based Porsche’s automotive unit, which also builds the Cayenne sport- utility vehicle and four-door Panamera car. Volkswagen aims for full integration of Porsche by 2011, as long as all merger requirements are met, the companies said Aug. 13.

Emirate’s Commitment

The Qatari financial commitment to the VW-Porsche merger amounts to 7 billion euros, the Doha-based sovereign wealth fund said Aug. 14. Porsche has pledged to set up a center for research, development and testing in the emirate.