Porsche rejects VW offer

STUTTGART: Porsche has rejected Volkswagen AG's bid to take a 49 percent stake in the sports car maker, a company spokesman said on Monday.

Porsche Automobil Holding SE spokesman Albrecht Bamler said the offer by VW ``is not a viable option.''

Debt-laden Porsche, based in Stuttgart, has been holding talks with a Qatar state investment fund on a possible investment.

Porsche confirmed earlier this month that it is in exclusive talks with the Qatar Investment Authority _ the primary investment vehicle of the small, energy-rich state.

Bamler said that for VW to take a stake in Porsche, the Wolfsburg-based automaker would have to take out credit worth euro10.75 billion ($15.15 billion).

Porsche holds a roughly 51 percent stake in Volkswagen, but ran up hefty debts in accumulating that holding and is now seeking a merger with the larger company. Exactly how that is to happen remains unclear.