Volkswagen confirms Porsche IPO talks, shares surge

News of the talks sent the shares surging, and by 1630 GMT they were up 7.4% at €187.96.

CMC Markets analyst Michael Hewson said: "The timing seems curious given the current wave of uncertainty rippling through markets which means that VW might experience some difficulty in obtaining maximum value, although as we’ve seen with other luxury brands, these do appear to be recession proof.

"The argument for spinning Porsche off has been that it would be worth more as a standalone business, while also freeing up VW to invest in its own electric car transition."

Volkswagen said a final decision on a listing has not been taken.