Volkswagen AG and Porsche Automobil Holding SE cannot agree on how much Porsche is worth while Porsche still faces legal issues.

The merger of Volkswagen AG and Porsche Automobil Holding SE has been delayed past the end of 2011 and into next year.

The two automakers had set the end of this year as a target date for completion of a merger but Porsche SE is facing legal troubles which have complicated the deal. Also, Volkswagen and Porsche SE cannot agree on a valuation of Porsche.

Porsche is facing legal action in Germany and the United States by a group of investors seeking damages against it for Porsche's previous attempt in 2009 at a takeover of the much larger Volkswagen AG. Investors claim that Porsche did not state publicly that it was attempting to takeover Volkswagen, in fact, denying it, while at the same time trying to buy as many VW shares as possible in order to accumulate a controlling interest in the Wolfsburg-based automaker.

Hedge fund investors who wagered on a VW decline in share price lost money when VW's value soared on knowledge of Porsche's acquisition goals. Those investors say that what Porsche did was tantamount to market manipulation.

Porsche says the investors have no legitmate claim.

VW is now looking at other ways to integrate the two automakers short of an immediate merger and will present a plan to the supervisory board by the end of the year.

Gallery: VW-Porsche merger delayed into next year