Volkswagen to Pay for Porsche Acquisition

Photo: Volkswagen to Pay for Porsche Acquisition

Volkswagen to Pay for Porsche Acquisition

The following is a list of companies whose shares may have unusual price changes in Germany. Stock symbols are in parentheses and share prices are from the previous close.

DAX Index futures expiring in September rose 1.4 percent to 5,297 as of 8:10 a.m. in Frankfurt. The DAX dropped 0.3 percent to 5,229.36 , Bloomberg reports.

Meanwhile, 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 , AFP reports.

However, 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.

German magazine Spiegel said Porsche's debts total around 14 billion euros, Reuters reports.