November 26, 2009 / 11:50 AM / in 8 years

Magna seeks $600 million as Porsche drops deal: report

VIENNA (Reuters) - Canada’s Magna International wants at least 400 million euros ($600 million) in compensation from sports car maker Porsche for cancelling a contract, a newspaper reported on Thursday.

Austrian newspaper WirtschaftsBlatt quoted an “involved person” as saying that the compensation was for development work already done by Magna, which was due to assemble Porsche’s Boxster and Cayman models from 2012 in its Austrian factory.

Porsche, which is in the process of merging with Volkswagen, aims to cancel the deal under which Magna would build the Boxster, a source familiar with the situation told Reuters on Tuesday.

Porsche last year awarded Magna an eight-year contract to build the Cayman and Boxster models from 2012.

Magna was not immediately available for a comment. Porsche declined to comment.

(Reporting by Boris Groendahl, editing by Will Waterman)

$1=.6625 Euro

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