Financial Times FT.com

Berlin ready to deny Porsche a state loan

By Gerrit Wiesmann and Daniel Schaefer in Frankfurt and Richard Milne in London

Published: June 21 2009 23:32 | Last updated: June 21 2009 23:32

The German government looks set to turn down a request by Porsche for a state loan of €1.75bn ($2.44bn), with which the sports car maker hoped to ease financing problems in the wake of its stalled bid for rival Volkswagen.

A senior government official told the Financial Times that the chancellery and the finance and economics ministries had “informally agreed” to deny the company’s request after state-owned bank KfW advised against the move.

Porsche 911

The German government looks set to turn down a request by Porsche for a state loan, a move that raises the pressure on the carmaker

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