MUNICH -- Porsche has turned down an offer from Volkswagen to help the cash-strapped sports car maker, the German Press agency dpa reported on Monday.
“It is not a practicable way for us to sell 49.9 per cent of Porsche AG to VW,” a spokesman for Porsche told the agency.
German press reports say Porsche CEO Wendelin Wiedeking and Chairman Wolfgang Porsche have been pressed to agree that VW takes a 49 percent stake in Porsche's sports car business for 3 billion to 4 billion euros ($4.2 billion to $5.6 billion).
The so-called “rescue” package would help Porsche with its financial problems.
Porsche owns 51 percent of Volkswagen and has stock options for a further 23 percent. The company amassed 9 billion euros ($12.7 billion) debt trying to swallow VW before the financial crisis threw it off course.
Der Spiegel magazine reported on Saturday that VW had given Porsche a deadline until the end of Monday to accept its layout for a merger of the two carmakers.
The magazine said VW would ask Porsche to pay back a 700 million euro ($983.8 million) loan in September unless Porsche agreed to VW's demand.
According to VW's proposal, the Emirate of Qatar would buy Porsche's stock options in VW, which would subsequently integrate the Porsche sports car business into its operations.
Der Spiegel reported that under the proposal the merged carmaker would eventually be 40 percent owned by the Porsche and Piech families, 20 percent by Lower Saxony, 15 percent by Qatar, and another sovereign wealth fund would hold 5 percent.
Volkswagen denied on Sunday that it had presented Porsche with a deadline but did not comment further.
On Monday, Christian Wulff, premier of VW's home state of Lower Saxony, said Porsche did not have all the facts.
"We need to clarify now whether each will go his own way or whether there is a common solution," he said.
Wulff said he felt a "certain irritation" after Porsche accused Volkswagen and Lower Saxony, the carmaker's second-largest shareholder, of issuing an ultimatum for Porsche to agree to a deal by the end of Monday.
"Apparently not all facts are known to everyone," he explained.
Lower Saxony is VW's second-largest shareholder after Porsche with a 20 percent stake.
Wulff called on both sides to concern themselves with their core business and not become entangled in power struggles.