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Porsche Shareholders Approve $6.5B Stock Sale

Sports car manufacturer says shareholders have agreed on a capital increase of up to $6.5 billion to raise funds for a merger with Volkswagen AG.

BERLIN (AP) -- Porsche says its shareholders have agreed on a capital increase of up to €5 billion ($6.5 billion) to raise funds for a merger between the sportscar manufacturer and Germany's largest automaker Volkswagen AG.

A Porsche spokesman, who declined to be named in line with company policy, said Wednesday a majority of shareholders voted late Tuesday for the capital increase that is to be completed by the end of August 2011.

The move is aimed at ridding Porsche of debts accumulated in its own failed 2009 attempt to take over Volkswagen. It will also pave the way for VW to fully acquire the sportscar manufacturer by the end of 2011.

Porsche earned €7.8 billion ($10.1 billion) in revenue for the year ending July 31 and sold 82,000 cars.

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