VW buys 49.9 per cent stake in Porsche

FRANKFURT: Germany's Volkswagen AG says it has purchased an initial 49.9 percent stake in fellow car maker Porsche AG carrying out a move that it had been expected to make this week.

VW, based in Wolfsburg, said Monday that it paid euro3.9 billion ($5.9 billion) for the stake. It has said that it hopes to take over Porsche in full in 2011.

VW's shareholders last week approved plans to issue up to 135 million new shares, generating income to help finance the move.