"Porsche is running into financial trouble...."

Porsche Automobil Holding SE (PAH3.XE) said Thursday it has no plans to sell its sportscar operations to Volkswagen AG (VOW.XE), dismissing a media report published earlier Thursday.

"We resolutely dismiss the speculation, which is currently being leaked on purpose," a spokesman for Porsche said.

The Financial Times reported earlier Thursday that Volkswagen could take over Porsche's sports car unit, citing people close to the situation. The move would turn the tables on Porsche, which boosted its Volkswagen stake to a majority holding in January.

At Thursday's shareholder meeting, Volkswagen Chief Executive Martin Winterkorn is facing questions on Porsche's future role at VW after analysts voiced concerns that Porsche is running into financial trouble, squeezed by mounting net debt of EUR9 billion after raising its VW stake to 51%.

The closely-held firm has repeatedly denied that it faces financial difficulties.

Source - WallStreetJournal