Porsche plans to raise Volkswagen holding to 75%

Porsche SE, maker of the 911 sports car, plans to raise its holding in Volkswagen AG to 75 percent next year and outlined steps for reaching that goal in a way meant to reduce the stock's volatility in the past two months.

Porsche now owns 42.6 percent of Volkswagen's common stock, has cash-settled options for another 31.5 percent and is sticking to plans to obtain a stake exceeding 50 percent by December, the Stuttgart, Germany-based carmaker said yesterday in a statement. The disclosure is aimed at giving "short-sellers the opportunity to close their positions unhurriedly and without bigger risk."

Porsche has been seeking control of Europe's biggest carmaker since March to boost margins as it faces fiercer international competition. European carmakers are under pressure as the global financial crisis and economic slowdown hurt demand for new vehicles.