Wolfgang says Porsche won't be sold to VW: report

By Tyler Sitte

FRANKFURT (Reuters) - Wolfgang Porsche, head of the supervisory board of Porsche and patriarch of one of its two controlling families, said the carmaker will not be sold to Volkswagen (VOWG.DE).

Media reports have said the Porsche and Piech families are set to make a decision on Wednesday over a possible sale of Porsche AG to Europe's largest automaker. They are trying to find ways to reduce the huge debt of Porsche's holding company.

"We are currently on the right path. Porsche AG will not be sold to Volkswagen," Porsche told the Frankfurt Allgemeine Sonntagszeitung (FAS) in an article to be published on Sunday.

The statement from the head of the Porsche clan appears to put him on a crash course with his cousin Ferdinand Piech, who advocates a sale of Porsche to VW.

According to articles in Spiegel and Wirtschaftswoche, Piech backs the VW option that would effectively wipe clean the debts of both the Piech and Porsche families, who control all the votes in Porsche Automobil Holding SE (PSHG_p.DE).

In addition, Piech suggested Porsche should replace its chief executive, Wendelin Wiedeking, and Chief Financial Officer Holger Haerter with VW CEO Martin Winterkorn and VW CFO Hans Dieter Poetsch.

Wirtschaftswoche said the sale could be worth around 11 billion euros.

TOUGH DECISION