Volkswagen $6B Share Issue To Fund M&A, Help Credit

Law360, New York (March 23, 2010, 1:50 PM EDT) -- German automaker Volkswagen AG said Tuesday that it plans to raise more than $6 billion in new capital by issuing some 65 million preferred shares, helping it finance recent major acquisitions and preserve its creditworthiness.

The capital is intended to "enhance" the Wolfsburg, Germany-based company's capitalization as it creates an integrated automotive group with Porsche AG.

In December Volkswagen completed a deal to acquire 49.9 percent of the luxury German automaker in a deal valued at $5.7 billion.

That transaction followed a failed takeover bid Porsche...
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