The German carmaker’s request for a 1.75 billion euro loan has been rejected and it has now said it will look for ‘alternative funds’.
By Ian Armitage
The loan was turned down by the state-controlled bank KfW and comes as Porsche struggles to finance the 9 billion euros of debt it took on as part of its attempts to gain full control of Volkswagen.
Porsche owns more than 50 percent of VW, but suspended attempts to buy a controlling stake of 75 percent when it ran out of money.
It has said it will now seek alternative sources of funding.
“Porsche has always stated that the loan was to be an operating loan not in any way burdening the German taxpayer,” the company said in a statement.
If Porsche had succeeded in controlling VW, the extra financial muscle gained could have been used to refinance its debt.