WOLFSBURG, Germany, Sept. 15 (UPI) -- Discussions between Volkswagen and the Emirate of Abu Dhabi over the potential sale of 9.8 percent of the company have failed.
The breakdown is a major setback for Volkwagen Chairman Bernd Pischetsrieder, who wanted to use the deal to finance a takeover of the financing group Leaseplan. Volkswagen will now be forced to find other funds to foot that bill, the online version of German newsmagazine Der Spiegel reports.
Volkswagen said the talks fell through on account of current capital market conditions, which made an agreement impossible. Der Spiegel cited unnamed sources indicating Abu Dhabi wanted to lower its original offer of 1.6 billion euros ($2 billion) to 1.3 billion euros ($1.59 billion) on account of German stock market weakness.
The Leaseplan takeover will go ahead as planned, with Volkswagen Financial Services buying 50 percent and the Saudi Arabian Olayan Group and Abu Dhabi based Mubadala Development Co. each buy 25 percent.
