Vw may raise Porsche deal to 4 billion Euros
By Andrew C., 26 Aug, 2010. 0 Comments
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VW and Porsche are set to decide on the structure of the combined group by August 13. VW is currently looking for ways to raise up to €4 billion for its plan to buy Porsche. VW has sufficient cash reserves to buy Porsche outright however, it wants to retain capital during the current trading conditions. Going against VW are concerns that by trying to raise the money, it could jeopardize its credit rating. Many ratings agencies fear that Porsche's 10 billion Euros debt could adversely affect VW. Further worrying VW is the possibility that sales will slump when European scrappage incentives begin to dry up in the next six months.
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