Volkswagen has offered to help Porsche secure another 3.4% via a capital increase,cementing the 2 firms co-operation,according to reports on Saturday. Luxury carmaker Porsche is already in the process of securing 18.5% in Europes largest carmaker, which would make it the largest shareholder in the mass car market Once the transaction is completed later this month. Weekly magazine Der Spiegel , in an advance copy of a report to be published on Monday ,said VW CEO Bern Pischetsrieder had offered Stuttgart-based Porsche to arrange a capital increase in which other shareholders would be excluded from participating .Volkswagen declined to comment on the report ,while Porsche said it was not aware of such plans. Porsche has defended its move to take a large VW stake as a defensive move to ensure stable ties with a company that already supplies content for some 30% of Porsches sales volume.
Posted On : 10/10/2005 6:29:49 PM