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VW mulls $5.6 billion capital hike
VW mulls $5.6 billion capital hike
Posted Tuesday, Jul 28, 2009, 3:15 pm in Employee News
Volkswagen is considering a $5.7 billion capital increase to offset the credit rating impact of its merger with Porsche, the Financial Times Deutschland reported on its Web site on Monday.
Citing company sources, the newspaper said Volkswagen initially would acquire a 50 percent stake in the sports car maker and purchase the rest in 2011. The acquisition price is estimated at 8 billion euros, the story said.
When contacted by Reuters, a spokeswoman from Volkswagen declined to comment on the report. Volkswagen has cash reserves of 11 billion euros and can therefore afford to pay for the Porsche acquisition, the newspaper said. But what was worrying was that Porsche’s mountain of debts could drag down the credit rating of Europe’s biggest carmaker, the newspaper reported. (Reuters)
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Rick
Nitro Year: 2007 (1 of 113,000 sold)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
Fully-Equipped w/all factory options
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