Volkswagen says Qatar backs merger

Detroit:  Volkswagen AG Chief Executive Martin Winterkorn said Monday the automaker is "slightly more optimistic" about the prospects and timeframe of the merger with Porsche Automobil Holding SE.

His comments come after a US court last month dismissed a lawsuit filed by a group of hedge funds over alleged market manipulation.

He noted, however, the plaintiffs could still appeal the verdict.

Winterkorn added that major shareholder Qatar Holding LLC is set to participate in the planned capital increase at Porsche, which is part of the merger plan and according to previous statements expected to be completed by May 30. Qatar is a very stable major shareholder ... We wouldn't do this if they wouldn't back it," Winterkorn told reporters at the North American International Auto Show.

He noted, however, that some legal issues still need to be resolved before the deal can be completed. A spokesman for Qatar wasn't immediately available for comment.

Winterkorn is the CEO of both Volkswagen and Porsche's holding firm, which plans a €5 billion (Dh24 billion) capital increase to reduce debt ahead of the planned merger with VW.

Qatar holds voting stakes of 17 per cent and 10 per cent in Volkswagen and Porsche, respectively, and is set to emerge as the third anchor shareholder of a combined company along with Porsche's owner family and the German state of Lower Saxony.

Alfa Romeo

Asked about a possible takeover of Fiat's Alfa Romeo marque, Winterkorn said that its "an interesting brand," but declined to elaborate. "If there were talks, I wouldn't tell you," he said.

Several Volkswagen executives have repeatedly voiced interest in Alfa Romeo, but Fiat CEO Sergio Marchionne so far denied he has plans for a sale.

Major shareholder

• 17%: Qatar voting stakes in Volkswagen
• 10%: Qatar voting stakes in Porsche