Porsche families near deal on VW: sources

FRANKFURT/HAMBURG (Reuters) - The families that own Porsche are close to a compromise agreement that could defuse the power struggle over control of the German carmaking powerhouse they seek to forge, sources close to the transaction told Reuters on Friday.

"They are getting closer," one of the sources said.

The compromise model, now supported by Porsche Chairman Wolfgang Porsche, envisions VW absorbing Porsche's healthy sports car business, Porsche AG, as VW Chairman Ferdinand Piech has been proposing, another source said.

VW would initially get just under half of Porsche AG, while holding company Porsche SE would remain entirely controlled by the Porsche and Piech families under the plan that has been approved in principle by the families, the sources added.

Qatar would take over derivative contracts owned by Porsche that would give the Gulf state a 20 percent stake in Volkswagen, Europe's biggest carmaker, the sources said.

A deal along these lines would undercut Porsche Chief Executive Wendelin Wiedeking, who on Thursday evening had to deny speculation that he was about to leave the group.

German magazine Der Spiegel reported that Porsche's owners had already agreed to replace him as head of the sports car business with production chief Michael Macht. The magazine said it remained open who would succeed Wiedeking as Porsche SE head.

Porsche shares fell 1.4 percent and Volkswagen stock eased 0.4 percent by 1350 GMT (9:50 a.m. EDT), lagging a 1.1 percent gain in the DJ Stoxx European car sector index.

Porsche said it was unaware of plans to replace Wiedeking. VW declined comment.