FRANKFURT (AFP) -– Porsche's controversial boss shrugged off talk of resignation on Thursday, as rumors swirled about how a key merger of the German sports car maker with its bigger rival Volkswagen may play out.

Newspapers reported that Porsche's owners were close to an agreement which would combine the heavily indebted company with Volkswagen, Europe's biggest carmaker, and sell VW stock options to the Persian Gulf state of Qatar.
Porsche chief executive Wendelin Wiedeking has been under siege for weeks and could be forced out if Volkswagen succeeds in turning the tables on Porsche in their drawn-out takeover maneuvers.
But “why should I resign when I have a contract that suits me?” Wiedeking told reporters Thursday evening on the sidelines of a ceremony marking the centenary of another German car maker, Audi.
“We have a job to do, for the company and its workers,” he added at the celebration in Ingolstadt, southern Germany, also attended by the head of Volkswagen's supervisory board, Ferdinand Piech.
Wiedeking spearheaded Porsche's doomed bid to increase its 51 percent holding in Volkswagen (VW), running up nine billion euros (more than 12 billion dollars) in debt for his company in the attempt.
The German weekly Wirtschaftswoche reported on Wednesday that he would quit amid an epic boardroom battle for control of Volkswagen, but Porsche swiftly denied it.
The Porsche and Piech families are “poised to settle their feud,” the Financial Times Deutschland and Financial Times (FT) reported on Thursday, citing a source close to the families.
Under their plan, VW would buy 49 percent of Porsche, Qatar would become the third-biggest shareholder in VW, and Porsche's massive debt would be nearly wiped out.
Qatar could end up with around 20 percent of VW's equity, making it the third biggest shareholder.
Porsche would keep almost 51 percent and the German state of Lower Saxony, where VW is based, its current 20 percent stake.
A deal would probably be followed by a full merger of Porsche and VW, the FT said.
A Porsche spokesman told AFP his company had “no knowledge” of any agreement. Such a deal would mean victory for Piech and defeat for Wiedeking, who has fought to keep Porsche independent.
After winning praise for making Porsche the most profitable car company in the world through complex financial transactions based on VW stock options, Wiedeking was sharply criticized when his takeover bid collapsed.
He also raised strong opposition among the group's powerful labor unions. Both Porsche and Volkswagen have announced they will hold extraordinary board meetings on July 23 in Porsche's home town of Stuttgart, raising speculation that a deal may be on the horizon.
“Wendelin Wiedeking will … present his concept on July 23,” the Porsche spokesman said.