Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

US media reacts to ebola scare

Read more

DEBATE

How to Stop Ebola: Center for Disease Control Confirms First Case of Virus in US (part 2)

Read more

DEBATE

How to Stop Ebola: Center for Disease Control Confirms First Case of Virus in US

Read more

THE INTERVIEW

I will support Hillary Clinton, will.i.am tells France 24

Read more

FOCUS

Germany: Spread of radical Islam propaganda sparks concerns

Read more

ENCORE!

Corrie Nielsen: Up and Coming Talent at Paris Fashion Week

Read more

FACE-OFF

French Senate election: A new blow for Hollande

Read more

ENCORE!

Encore's Film Show: Julie Gayet, Denzel Washington, and cartoon madness

Read more

MIDDLE EAST MATTERS

Turkey's strategy towards the Islamic State group

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)