Porsche weighs options to reduce debt

STUTTGART, Germany, May 4 (UPI) -- German automaker Porsche is attempting to reduce its debt before the expiration of options to finance a deal with Volkswagen, banking sources said.

Should the options expire, banks that helped finance Porsche's purchase of 75 percent of Volkswagen would sell their VW stock, sharply cutting into the value of the shares, Der Spiegel reported Monday.

That would undermine Porsche's own VW stock holdings. On the other hand, extending the options contracts would mean hundreds of millions of dollars in bank fees.

Wolfgang Porsche, the automaker's supervisory board chairman, and his counterpart at Volkswagen, Ferdinand Piech, have considered merging the two companies to raise capital.

Another plan involves the Arab emirate of Qatar, which would purchase a major stake in the company, Der Spiegel reported.