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MALAYSIA: Proton denies VW talks stall

By just-auto.com editorial team | 19 July 2005

Proton Holdings said a report that talks with Volkswagen over the latter's interest in taking a stake in the company have stalled are incorrect and purely speculative, AFX News reported.

The company reportedly made the clarification in reply to a query from Bursa Malaysia.

Financial weekly the Edge earlier reported that talks between the two parties have stalled after VW's plan to acquire a substantial stake was opposed by Proton's senior management.

XFN-Asia reported yesterday that negotiations between Proton and Volkswagen are still ongoing.

Proton said last October it would assemble and sell VW cars as part of a 'long-term strategic partnership' that could lead to technology sharing and the joint development of cars, AFX noted.