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VW looks at 4bn capital raising

Europe’s largest carmaker Volkswagen (VW) is exploring the possibility of a capital raising of up to €4bn (£3.2bn) as part of a plan to buy Porsche. The Piech and Porsche families reconciled last week after intense feuding over a rescue of the luxury carmaker, by agreeing to integrate it into VW. The companies were not available for comment yesterday. Ratings agencies have raised worries about the companies merging, saying that Porsche’s high debt – more than €10bn – could hit VW’s credit rating.