Volkswagen looking to raise $5.7 billion to finance Porsche takeover

Europe’s largest automaker, Volkswagen, is considering a capital increase as one option among many to finance its takeover of sports car maker Porsche. Bankers familiar with the matter said that the company is looking to raise up to 4 billion euros ($5.7 billion) ahead of taking over Porsche to protect its credit ratings.

“Volkswagen is planning to buy Porsche’s sports car business as fast as possible and, to finance this, they are thinking about strengthening their capital base,” the Financial Times quoted a person familiar with the situation as saying.

A spokesman for Volkswagen declined to comment.

The Volkswagen/Porsche merger hit a significant turning point last week when Porsche CEO Wendelin Wiedeking, who opposed the merger, resigned.

– By: Stephen Calogera

Source: Reuters