Stuttgart - Porsche and its rival, the German state of Lower Saxony, have both moved to enlarge their stakes in Volkswagen, leading the European Union to delay Wednesday its verdict on Porsche's plan to take management control of the German carmaker.

Porsche, which has announced plans to ultimately acquire more than 50 per cent, disclosed it had signed a contract to buy 4.92 per cent of Volkswagen equity, but had not actually acquired the stock yet.

The move would lift Porsche's stake, now 31 per cent, to more than 35 per cent.

The European Commission said it was delaying its verdict on the takeover, originally due on Wednesday, till July 23 because Porsche had refiled its application.

Porsche, which says it needs to obtain merger clearance from 15 other regulators 'round the globe, said it was under a duty to re-apply because of the latest purchase.

Lower Saxony disclosed Wednesday it had purchased 500,000 Volkswagen shares to ensure its shareholding in the state's biggest industrial enterprise remained above
20 per cent.

At current market value, Lower Saxony would have needed to spend 90 million euros (140 million dollars) to do so.

The state, with Berlin's backing, insists that a 20-per-cent stake gives it veto rights at Volkswagen equivalent to the powers normally associated with 25 per cent or more of equity under German company law. Porsche disagrees, citing EU law.

Lower Saxony said it was forced to act because its shareholding had been diluted by the issue of 3 million new Volkswagen shares to employees. (dpa)