STUTTGART, Germany (AP) — Porsche on Monday dismissed a report that it plans to raise its stake in fellow German automaker Volkswagen AG to as much as 75 percent, arguing that it would be an unrealistic idea.
Last week, Porsche Automobil Holding SE's supervisory board authorized managers to set in motion steps to take a majority stake in Volkswagen — a long-expected move. However, it did not specify exactly what the size of that stake would be.
Over the weekend, the weekly magazine Focus reported that ''internal planning'' called for Porsche, which currently is Volkswagen's biggest shareholder with some 31 percent, to raise its stake to 75 percent.
Porsche denied that in a statement, saying the report ''overlooks the realities of VW's shareholder structure.''
Volkswagen's second-largest shareholder is the German state of Lower Saxony, where the company's Wolfsburg headquarters is located. It holds just more than 20 percent and has ruled out selling shares.
Given the size of Lower Saxony's stake, ''the probability is extremely small'' of being able to buy enough free-floating shares to take 75 percent of Volkswagen, Porsche said.
Porsche has said it does not intend to merge with Volkswagen after it takes a majority.
Volkswagen shares were up 1.7 percent at euro154.34 (US$237.07) in Frankfurt trading. Porsche shares were down 0.9 percent at euro114.13 (US$175.31).
