Porsche owner families near VW deal - sources

The families that own Porsche are close to a compromise agreement that could defuse the power struggle over control of the German car-making 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.

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

Porsche was not immediately available for comment. VW declined comment.