Porsche loan application rejected by KFW

FRANKFURT (Reuters) - Porsche Automobil Holding SE (PSHG_p.DE) will seek alternate ways of refinancing its debt after German state-controlled bank KFW KFW.UL officially rejected a 1.75 billion euro loan application, Porsche said.

Porsche has struggled to get loans to refinance a 9 billion euro debt mountain which it acquired in the course of a botched takeover attempt of Volkswagen AG (VOWG.DE).

After failing to secure a 1.75 billion euro ($2.45 billion) loan from commercial banks, Porsche turned to KFW and submitted an application for an extraordinary loan.

Porsche said KFW had rejected the loan application, adding it would not make another request for a loan with KFW.

Porsche secured 10.75 billion euros in refinancing from banks in March, but will seek talks to find "alternate" ways of financing, it said on Tuesday without specifying details.

Its shares dipped on the news but recovered to trade up 4 percent at 48.31 euros by 1023 GMT (6:23 a.m. EDT).

Porsche, which owns 51 percent in Volkswagen, abandoned an attempt to secure a 75 percent stake and has instead pledged to create an "intergrated" automotive group with VW.

(Reporting by Edward Taylor; Editing by Michael Shields))