REFILE-UPDATE 2-Porsche sells 10 pct voting stake to Qatar

(Corrects to add dropped word "first" to first bullet point)

* Porsche surrenders voting rights for the first time

* Also to sell majority of options for VW shares to Qatar

* Move comes in addition to sale of Porsche AG stake to VW

* VW ordinary shares close down 15 percent, off lows

* Porsche shares close up 8.8 percent

(Adds details of Qatar deal, stock prices, VW CEO quote, background)

FRANKFURT, Aug 14 - Porsche was forced to sell a 10 percent voting stake to Qatar Holding LLC as a way to prop up its strained finances, marking a climbdown for a predator that had once sought to dominate Volkswagen.

The Qatar sale gives outsiders a say in the debt-saddled family-controlled auto group for the first time since it started building Porsche branded cars in 1948 and comes just after it was forced to sell part of its sportscar business to VW.

Porsche is selling a 42 percent stake in Porsche AG for about 3.3 billion euros ($4.7 billion) and also sold a package of cash-settled options on VW shares to Qatar which the company said would free up 1 billion euros in cash for Porsche.

The derivatives deal will give Qatar access to a 17 percent stake in Volkswagen, Europe's biggest car maker, a person familiar with the deal said.

Volkswagen said it would add the Porsche marque as a 10th brand to its stable that already includes Audi, Bugatti, Bentley, Lamborghini, Skoda, Seat and Scania.

"The journey has been anything but easy. Up until the last couple of days there have been tough and sometimes emotional disagreements. But that time is now behind us," said Volkswagen Chief Executive Martin Winterkorn, who was also named Porsche CEO late on Thursday.

VW's ordinary shares fell 15.6 percent to close at 190.70 euros, having dropped as low as 165.00 euros during the day. Porsche shares rose 8.7 percent to close at 48.50 euros.

LOST POWER STRUGGLE

Porsche's capitulation comes after a failed attempt to take over VW and at the end of a prolonged power struggle that claimed the scalp of Porsche Chief Executive Wendelin Wiedeking.

Porsche had sought to seize control over Volkswagen as a way to gain access to key components and technologies it needs to meet stringent new pollution rules.

But Porsche's takeover attempt backfired after it took on more than 10 billion euros in debt while buying a 50 percent VW stake and a package of derivatives for control over an additional 20 percent of VW stock.

It was forced to seek help from Volkswagen, which already supplies components for about a third of all Porsche cars, including bodies of the four-door Cayenne and Panamera models.

In a further step to alleviate Porsche SE's debt, Porsche's controlling families -- the Piech and Porsche clans -- will sell their automobile trading business, Europe's largest, to VW.

The business, with an enterprise value of 3.55 billion euros, will be sold by 2011, Volkswagen said.

Porsche also aims to raise capital by issuing new ordinary and preferred shares, probably in the first half of 2011.

The Porsche and Piech families will retain a stake of between 35 percent and 40 percent in the new combined company, remaining the largest shareholders.