Volkswagen Raises Porsche Bid

Although Volkswagen and Porsche had planned to already be making significant headway in the historic acquisition, it recently became evident that a variety of factors were stalling the deal. However, Volkswagen has upped the ante, offering Porsche about $5.6 billion, or 4 billion Euros, to take a 49.9 percent stake in the famed sports car maker.

According to a German weekly newspaper, this marks a 1 billion euro, or $1 billion, increase in Volkswagen’s previous offer for the struggling automaker. Porsche rejected Volkswagen’s first bid after Volkswagen accused Porsche of misrepresenting the extent of their financial struggles when Volkswagen asked for a complete report.

This marks a reversal from about a year ago when Porsche tried to acquire Volkswagen right as the global economic settled in. Instead of seamlessly acquiring the much larger Volkswagen, Porsche ended up mired in about $13 billion worth of debt and only a 51 percent stake in the company. Neither company has released an official comment on the report.

Porsche (Image: Flickr)