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Sat 11 Jul 2009 08:46 PM

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VW raises offer for Porsche stake - report

Wendelin Wiedeking, CEO of heavily indebted Porsche still considers amount insufficient.

Volkswagen has raised its offer to take a 49.9 percent stake in sports car maker Porsche to more than 4 billion euros ($5.56 billion), according to a report in Der Spiegel on Saturday.

The German weekly magazine also wrote that Wendelin Wiedeking, CEO of the heavily indebted Porsche, still considered the amount insufficient.

It added that the latest VW offer reflected an increase of roughly 1 billion euro ($1.39 billion), as compared to a previous bid that was rejected by Stuttgart-based Porsche.

Neither car maker would comment on the report.

Porsche, which ran-up 9 billion euros ($12.5 billion) worth of debt following an aborted attempt to acquire 75 percent of Volkswagen votes, has since been looking to rescue itself by uniting with its cash-rich subsidiary, in which it has a 51 percent stake.

It has also been in talks with the Qatar Investment Authority.

Reports say the Porsche board is due to meet on July 23 to discuss the Qatar offer worth over 5 billion euros ($6.97 billion). (Reuters)

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