Porsche borrows €10 billion to pay for Volkswagen stake
Porsche AG, maker of the 911 sports car, borrowed $13.7 billion from 37 lenders to finance its purchase of Volkswagen AG shares, a banker involved in the transaction told Bloomberg News.
Porsche AG cut the loan from as much as €35 billion ($48 billion) after Volkswagen shareholders tendered less than 1% of their stock to the Stuttgart, Germany-based company. Porsche offered shareholders the lowest amount allowed under German law after its holding in Volkswagen, Europe's largest carmaker, breached the 30% threshold that forces a takeover offer.
Porsche will pay interest of 20 basis points more than the euro interbank offered rate for the loan, which matures in a year, the banker said. The carmaker offered to pay as much as 47.5 basis points if it borrowed the maximum €35 billion. (detnews.com)
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