Porsche to buy 20% of VW

PORSCHE plans to buy 20% of Volkswagen’s shares to prevent a hostile takeover of Europe’s largest carmaker and strengthen the companies’ partnership.

Porsche will pay for the Volkswagen stock out of existing capital, the Stuttgart, Germany-based company said yesterday. The investment would be worth about €3.3 billion.

Volkswagen, based in Wolfsburg, Germany, welcomes Porsche interest in “a strategic stake”, said Frank Gaube, a Volkswagen spokesperson.