State funding request
June 4, 2009
Porsche planned to ask the federal KfW bank for a loan of 1.75 billion euros ($2.49 billion), a spokesman for the Stuttgart-based carmaker said.
In recent months, the sports car manufacturer has attempted to negotiate credits worth 12.5 billion euros, to cover the company's operating costs.
In late March a new credit agreement secured 10 billion euros, and last month the Bank of Tokyo pledged a further 750 million euros.
It is now hoped that the state-owned KfW bank will provide the remaining 1.75 billion euros.
The new 1.75-billion-euro loan will bring the total in loans to 12.5 billion euros – the maximum amount the company said it planned on taking out in conjunction with its planned takeover of VW, Europe's largest car manufacturer.
VW takeover weighing heavily on Porsche's finances
Porsche is struggling with nine billion euros of debt resulting from the VW takeover.
Porsche started acquiring Volkswagen shares in 2005 and, as of January, owned nearly 51 percent of Wolfsburg-based VW's shares.
Last month Porsche and VW agreed to integrate their businesses into one joint company. Negotiations are under way.
nda/dpa/ap