Employees aim up to 5% stake in VW

Written by Reuters | Frankfurt | Updated: Aug 31 2009, 06:56am hrs
Roughly 3,70,000 employees of Volkswagen and Porsche are striving initially to acquire a stake of up to 5% in the automotive group, VWs labour chief told a German newspaper.

I dont know, how much we will end up with. It certainly wont be 10% overnight, but between 1 and 5% to begin with, Sueddeutsche Zeitung quoted Bernd Osterloh on Saturday as saying. It was not clear yet, how the employees would finance the purchase of their stake, the paper said.

Volkswagen Europes biggest carmaker agreed to buy a 42% stake in the sports car unit of debt-ridden Porsche SE earlier this month.

It will pay up to 3.3 billion euros ($4.7 billion) this year for the initial stake in the unit, Porsche AG, paving the way for the creation of an integrated automotive group by the end of 2011. Volkswagen plans a capital increase of preference shares in the first half of 2010 to finance the purchase.