unanimously gave power to the management to seal the discussions

Porsche's supervisory committee "unanimously gave power to the management to seal the discussions" with the Gulf state for it to take a stake in the firm, a statement said.

This paves the way for a tie-up with its giant rival Volkswagen (VW), Europe's biggest car maker, it said.

Another statement said later that Wiedeking and financial director Holger Haerter would both resign "with immediate effect."

At the center of the dispute between the president and supreme leader is Mashai, a member of Ahmadinejad's personal inner circle. Iran has 12 vice presidents, and Mashai has been serving in one of the slots in charge of tourism and culture. Ahmadinejad said last week he was elevating Mashai to the first vice presidency. That is the most important of the 12 because it is in line to succeed the president if he dies, is incapacitated or removed. The first vice president also leads Cabinet meetings in the president's absence.

Ahmadinejad is a member of the hard-line camp, but throughout his first term he had disputes over policy and appointments with fellow conservatives, some of whom accused him of hoarding too much power for close associates rather than spreading it among factions.

Wiedeking -- said to be the best-paid boss in Germany -- was to get a leaving payment worth 50 million euros (71 million dollars), of which half would go to a "social foundation."

Porsche also said it would seek to raise at least five billion euros in fresh capital beyond what Qatar might bring to the table, without saying who would take part in that increase.

Most surprising is Ahmadinejad's defiance of Khamenei's order for Mashai's removal. The supreme leader has been the president's top defender in the election dispute, dismissing opposition claims that Ahmadinejad's victory in the June 12 vote was fraudulent. The opposition says pro-reform candidate Mir Hossein was the real winner and calls Ahmadinejad's government illegitimate.