TIMELINE: Porsche, VW prepare ground for merger

(Reuters) - The board of sportscar maker Porsche conceded a power struggle with mass-market rival Volkswagen on Thursday, by axing its CEO and planning to raise funds to prepare for their merger.

Below is a timeline of the paths that have led the two companies to the point of merger:

September 25, 2005 - Porsche says it plans to buy a stake of about 20 percent in VW. Three days later it emerges with a 10.3 percent voting stake, subsequently increased via forward-rate agreements.

August 2, 2006 - Porsche Chief Executive Wendelin Wiedeking first advocates the abolition of Germany's "VW Law" that caps voting rights in VW at 20 percent.

November 15 - Porsche's supervisory board authorizes management to increase its VW stake to 29.9 percent, triggering speculation it plans to gain majority control.

April 30, 2007 - Porsche submits mandatory takeover offer after crossing 30 percent threshold.

October 23 - European Court of Justice rules against VW Law.

March 3, 2008 - Porsche supervisory board gives go-ahead to raise its VW voting stake to over 50 percent.

October 26 - Porsche says it holds stock and options that give it control of 74 percent of VW's votes and announces plans for a "domination" agreement. A resulting scramble for VW shares by shortsellers caught out by the announcement briefly makes VW the world's most valuable company.

January 5, 2009 - Porsche says it has raised its VW voting stake to 50.8 percent and confirms its plan to raise stake to 75 percent this year if conditions allow.

May 6 - Laden with debt as car markets plunge, Porsche drops takeover plan and says it will pursue a merger instead.

May 12 - VW Chairman Ferdinand Piech names an ally, VW Chief Executive Martin Winterkorn, as his candidate to head the merged group. Warns Porsche it must get its 9 billion euro debt under control before any deal can be agreed.

May 17 - VW halts tie-up talks with Porsche, says its smaller peer and shareholder is not ready for a merger. Two days later Porsche and VW agree to work together again.

May 25 - Porsche confirms it received a 700 million euro loan from VW.

June 9 - Porsche starts talks with investment fund Qatar Investment Authority (QIA) to sell a stake in its automobile holding via a share capital increase or by selling its options for Volkswagen shares.

June 25 - Germany denies Porsche a state loan.

June 27 - Porsche accuses VW and its key shareholder Lower Saxony of extortion following a media report that VW and the regional state had demanded Porsche accept a tie-up. Volkswagen denies the report the next day.

June 29 - Qatar offers to invest in Porsche.

- Porsche says it will seek alternative ways of refinancing its debt after state bank KfW officially rejected a 1.75 billion euro loan application.

July 10 - Chairman Wolfgang Porsche calls an extraordinary supervisory board meeting for July 23 to discuss a possible sale of a stake in Porsche SE to Qatar worth over 5 billion euros.

July 20 - Porsche has racked up 14 billion euros ($19.75 billion) in debt in its failed attempt to take full control of Volkswagen, Germany's Bild reports.

July 23 - A proposal by Porsche's board to prepare for a capital increase of at least 5 billion euros in cash and/or a contribution in kind, is approved by the supervisory board, setting the stage for a merger with Volkswagen.

- Porsche axes its chief executive Wendelin Wiedeking, who had opposed a takeover by VW and been behind the attempt to take VW over. Chief Financial Officer Holger Haerter is also axed.

- Volkswagen's supervisory board meets to discuss if Qatar will take a stake in Volkswagen, in Porsche or in both companies.

For a NEWSMAKER profile of Porsche's departed CEO Wiedeking, click on

For a NEWSMAKER profile of VW chairman Ferdinand Piech, click on

For a FACTBOX on key players in the Porsche/VW drama, click on

(Reporting by Christiaan Hetzner and Michael Shields; Writing by Carl Bagh and Jijo Jacob; Additional writing and editing by David Cutler/Will Waterman)