VW unveils huge capital increase, shares plunge

FRANKFURT: Europe's biggest car maker, Volkswagen, announced a capital increase of around 4.42 billion euros (5.96 billion dollars) on Tuesday, leading the German giant's shares to plunge.

VW said in a statement that the capital would be increased by issuing up to 65 million new shares. The decision is to be finalised later this week.

The company's shares fell sharply on the Frankfurt stock exchange, plunging 6.83 percent to 67.97 euros immediately after the announcement.