FRANKFURT -- Volkswagen AG denied market talk on Friday that it was preparing to issue shares to raise fresh capital, but its stock remained under pressure as fears that a strike in Germany was looming.
"We are not going to have a capital increase," a spokesman said, dismissing the market talk as "old rumors."
A fourth round of wage talks with western German staff ended Thursday with the sides still far apart.
The IG Metall metal workers union's top negotiator said prospects for a deal at a fifth round of talks next week were "relatively small" and said warning strikes could start next month.
"The bad news is that there is still no result and that strike activity gets more likely. However, it is good news that management stayed firm in its negotiation stance so far," HVB analyst Albrecht Denninghoff said in a research note.
"We continue to believe that deteriorating fundamentals outweigh speculation on improvement."