FRANKFURT -- Volkswagen is in ongoing negotiations with Abu Dhabi over plans to sell its treasury shares to the Gulf emirate to finance its LeasePlan acquisition, the company said on Thursday.
"The talks are continuing in a constructive manner and are progressing towards the closure of a contract," a VW spokesman said.
"There is no indication that Abu Dhabi's interest in taking a long-term stake in Volkswagen has changed," he added.
Volkswagen first said in late April that the two sides had agreed in principle to Abu Dhabi acquiring some or all of VW's treasury shares, following their announcement that the company would join up with Abu Dhabi and a Saudi investment group to acquire fleet management business LeasePlan from ABN Amro.
Since then, the company's market cap has fallen by 16.7 percent, with a closing share price of 31.77 euros on Thursday. Late on Wednesday, Dow Jones Indexes said it would expel the company from its Euro Stoxx 50 blue-chip index since VW shares failed to meet its market cap requirements.
German newspaper Frankfurter Allgemeine Zeitung reported on Friday, without citing sources, that Abu Dhabi wanted to pay a lesser price for the 10 percent stake.