VW to take full control of Porsche

Porsche SE, the holding company that still controls about half of the sports-car business that VW does not already own, will receive 4.46 billion euros ($5.58 billion) plus a single common VW share, VW said in a statement late on Wednesday.

On Thursday before the official market open in Frankfurt, VW shares were indicated up 2.3 percent according to brokerage Lang & Schwarz, while Porsche SE shares were seen 7.8 percent higher.

VW scheduled a press conference at its Wolfsburg, Germany, headquarters for 0800 GMT on Thursday to provide more details of the deal, which comes two years before a planned target date to complete the deal free of tax.

Full consolidation of Porsche's auto-making operations in VW's accounts would boost VW's full-year financial result by more than 9 billion euros and shrink its net liquidity by about 7 billion euros, the company said.

Europe's largest carmaker and Porsche have been pushing for rapid integration of their automotive businesses to pave the way for cost savings of about 700 million euros a year and to erase about 2 billion euros of debt at the sports-car maker's holding company.

Submitting a single common VW share to Porsche SE may classify the deal as a restructuring under Germany's so-called reorganisation tax law and help VW avoid tax payments.