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Delay announced to Porsche-VW merger

Porsche and VW have stressed their commitment to merger plans, but warned they face delays.

17 March 2011

A planned merger between holding company Porsche SE and carmaker Volkswagen has been delayed, the companies have announced.

Merger and acquisition advisors may be required for the project in the future, as the Martin Winterkorn, chairman of both entities, insisted in a statement that "our common goal is and remains a merger", according to AFP.

However, the combination of the automotive manufacturers may take a different form that that initially proposed, as the news source notes the move faces challenges from US investment funds and an investigation in Germany into accusations of stock market manipulation by two executives from Porsche.

Before the announcement Reuters reported that Porsche SE is planning to draw up a strategy aimed at attracting investors, as the Volkswagen merger looked as though it may fall through.

According to the news source, Volkswagen could make a move to take control of the shares in Porsche AG rather than combining its operations with the holding company.

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