Porsche set for 5bn of losses

CARMAKER Porsche said yesterday it was in advanced talks to sell off its cash-settled options on Volkswagen (VW) shares, and that it expects to report pre-tax losses of up to &euro;5bn (&pound;3.8bn) in its current fiscal year. That figure compares with a year earlier pre-tax profit of &euro;8.6bn, the bulk of which came from gains from its derivative hedges on Volkswagen shares.<br /><br />It expects to receive more than &euro;1bn in cash from the disposal. Porsche acquired the shares as it sought to take over the much bigger VW, but the plan failed and instead VW will takeover Porsche.