Porsche stake in VW

Following reports last week that financiers from Arab countries as well as Kirk Kerkorian were interested in buying up shares in beleaguered Volkswagen, Porsche says it will take a stake of about 20% in VW.

Porsche confirmed the move, AP reports, by noting that VW has become "a significant supplier for about 30% of our sales volume" and "an important partner in development."

Porsche has worked with VW on the design and engineering of the Cayenne/Touareg/Q7 SUVs, and in the future will develop a hybrid powertrain for the trio.

"With this engagement, we want to secure our business relations with VW and also safeguard in the long term a significant part of our future planning," Porsche chief executive Wendelin Wiedeking said in a statement.

The stake would, under current German law, prevent a hostile takeover.

The pricetag for the stake is estimated at $3.6-billion.