FRANKFURT - Porsche Automobil Holding SE has abandoned its target of reaching a 75 percent majority holding in Volkswagen AG, sources familiar with the matter told Reuters on Wednesday.
Porsche said in early January it controls about 51 percent of Volkswagen's voting shares and has repeatedly said it wants to raise its stake to 75 percent this year should economic conditions allow.
Porsche needs a different solution, said one person familiar with the discussions.
Another person close to the matter said discussions of clinching a domination agreement that would give Porsche direct management and financial control of Europe's biggst carmaker had dissolved in nuclear dust.
Porsche had no comment. Its controlling shareholders were meeting on Wednesday to discuss how to handle the 9 billion euros ($11.98 billion) in net debt it built up for the takeover. (Reporting by Jan Schwartz, Edward Taylor and Philipp Halstrick, Editing by Michael Shields)