Hamburg (Germany): European auto giant
Volkswagen Aktiengesellschaft today said its shareholders have
approved the proposal for issuing 135 million new preference
shares, a move aimed at ensuring greater financial flexibility
prior to the company's proposed merger with Porsche AG.
The move will pave the way for capital increase planned
for the first half of 2010, the group said in a statement
.
The move is intended to give "the financial flexibility
needed to grow the integrated automotive group and also ensure
appropriate liquidity and a healthy financing structure for
Volkswagen AG after all the steps in the transaction
concerning the merger with Porsche have been completed."
In the next few weeks, Volkswagen group is expected to
take a 49.9 per cent stake in Porsche AG.
The final merger deal between the two auto firms is
planned for 2011.
"The combination of Volkswagen and Porsche to form a
group with ten strong brands follows a compelling strategic,
industrial and financial logic," the statement said.
PTI
First Published: Friday, December 04, 2009, 22:05