Don't miss

Replay


LATEST SHOWS

THE INTERVIEW

'IS group is not most important threat to Iraq'

Read more

THE INTERVIEW

'The Iraqi people are more divided than ever'

Read more

BUSINESS DAILY

Is China creating a tech start-up bubble?

Read more

IN THE PAPERS

'The Good, the Bad and the Ugly'

Read more

IN THE PAPERS

'French cinema triumphs'

Read more

THE WORLD THIS WEEK

After the fall of Ramadi and Palmyra: Did the West underestimate the jihadists? (part 2)

Read more

THE WORLD THIS WEEK

Migrants and immigrants: A global crisis (part 1)

Read more

ENCORE!

The Little Prince on the big screen

Read more

EYE ON AFRICA

At least 3 dead in grenade attack in Bujumbura

Read more

Business

VW may raise four billion euros for Porsche deal, says report

Text by NEWS WIRES

Latest update : 2009-07-27

According to a Financial Times report, European biggest automaker Volkswagen could raise capital of up to four billion euros to protect its credit ratings from falling as the company finances its upcoming takeover of Porsche.

AFP - Volkswagen, Europe's biggest automaker, could raise fresh capital of up to four billion euros (5.7 billion dollars) to finance the takeover of its main shareholder Porsche, a report said Monday.

On Thursday, VW said it would take control of the sports car icon after a lengthy battle for which of the two companies, linked by strong controlling family ties, would come out on top of a new group aiming to challenge Toyota to be the world's number one auto company.

Porsche ended up with 10 billion euros of debt as it built up a controlling stake in VW and this cost ultimately weakened its own position.

The Financial Times said Volkswagen wanted to buy Porsche’s sports car business as fast as possible and so was considering strengthening its capital base to do so.

Raising fresh funds for the Porsche takeover, estimated to cost eight billion euros, will protect VW's credit ratings, the report said.

VW, which is poised to start looking into Porsche’s books in the coming days, declined to comment, it said.

VW and Porsche plan to decide on the structure of the combined group by August 13, it added.

Date created : 2009-07-27

COMMENT(S)