FRANKFURT -- Porsche Automobil Holding SE, which plans to merge with Volkswagen AG, said its executive and supervisory boards will decide on the details of a planned 5 billion euro ($7 billion) share sale on Sunday. A group of banks agreed to underwrite all new ordinary and preferred shares to be offered at 38 euros apiece, Porsche said in a statement late Friday.
Holders of ordinary shares indicated they agreed to the subscription price and plan to exercise their rights for the new ordinary shares, the company said. Porsche, which plans to use the proceeds to cut debt to about 1.5 billion euros, last week said a timetable to sell new shares still stands amid the volatile financial markets following the Japanese earthquake.
Porsche and Volkswagen agreed to combine in August 2009 after the maker of the 911 sports car racked up more than 10 billion euros of debt in an unsuccessful attempt to gain control of VW.
The merger, originally scheduled for completion in the second half of 2011, will probably be delayed into next year because of German legal obstacles. An investigation into share-price manipulation allegations will likely push the deal's completion into 2012, Porsche said Feb. 24.
Porsche shareholders last year approved the stock sale to raise funds, half of which will come from the Porsche and Piech families, who control the common stock.