Shares of Volkswagen extended gains today amid talk that Porsche could eventually mount a full takeover bid for Europe's biggest carmaker.
VW shares rose 4 per cent at one point, and were trading 2.7 per cent higher at €86.50 earlier this morning.
Volkswagen stock hit an eight-year high yesterday when Porsche announced it had raised its stake to 27.4 per cent, aimed to raise its holding as high as 29.9 per cent and planned to create authorised capital worth around €8 billion as a possible acquisition currency.
Porsche has said its stake aims to secure close ties with a strategic partner in case a law limiting voting rights in VW is overturned. It has ruled out so far surpassing the 30 per cent threshold that would make it launch a full bid.
But the market is abuzz with talk that Porsche, owned by the family of VW chairman Ferdinand Piech, could at some stage decide to take full control of VW.