Porsche says is in exclusive talks with Qatar

Published: 09 Jun 2009 02:24:08 PST

HAMBURG, Germany, June 9 - Porsche is in exclusive talks to strike a deal with the Gulf state of Qatar that could ease the German automotive group's debt burden, Porsche said on Tuesday, confirming earlier reports.

"There are only talks with Qatar now," a spokesman for the company said.

A person close to Porsche said that the company was in talks with investment fund Qatar Investment Authority (QIA) to sell a stake in its holding company via a capital increase of common shares or by divesting its options for Volkswagen shares.

The Financial Times had earlier reported that QIA could take a stake of up to 25 percent in Porsche's holding company in a deal involving a capital increase of up to 4.5 billion euros ($6.25 billion).

A deal could be announced within weeks, the paper had said.