Porsche seeks 50% share in Volkswagen

Porsche has announced its intention to increase its stake in Volkswagen to more than 50 per cent - allowing it to take control of the company.

Following an extraordinary meeting of the company's board on Monday, the company announced plans to purchase a further 20 per cent of Volkswagen's stock - at a cost of ?150 million (£115 million) at present market value.

Review in light of regulatory and antitrust laws throughout the world is expected to take several months, and must be completed before the deal can go ahead.

"Our aim is to create one of the strongest and most innovative automobile alliances in the world, which is able to measure up to the increased international competition," said Dr Wendelin Wiedeking, chief executive of Porsche.

Competition is likely to come from Japan's Toyota and America's General Motors, both of which have been struggling for market share in recent months.

It is hoped Porsche will now "be able to write a new chapter in automobile history, working together in a partnership based on fairness and collegiality", according to Mr Wiedeking.

Following completion of the deal representatives from Volkswagen will take seats on the Porsche board.

However, there are no plans to merge the two companies at this time.

"Our aspiration to become the majority shareholder of Volkswagen is good news for the employees of the Volkswagen Group and of Porsche.

"The decision of the supervisory board secures the long-term future of both companies," concluded Mr Wiedeking.