Volkswagen announced yesterday that it will issue almost 65 million preferred shares to help prop up its merger with Porsche and further defend the group’s credit rating.
A source close to Volkswagen said the capital increase aims to raise approximately 4 billion euros (AUD$5.89 billion), and that VW shareholder Qatar is open to purchasing the new shares.
Qatar still holds a 17 per cent voting stake in VW after selling half on its non-voting preferred shares late last year. It is still the third largest investor in the German firm after Porsche and Lower Saxony.
The news caused VW shares to fall more than 7 per cent overnight.