BERLIN Jan 11 Volkswagen shares
rose in early Wednesday trading as investors welcomed news the
carmaker is on the cusp of a criminal and civil settlement with
the U.S. Justice Department over its emissions test cheating
Volkswagen (VW) said after the market close on Tuesday it
was in advanced talks over a $4.3 billion settlement, and it
planned to plead guilty to criminal misconduct.
VW shares were up 2.1 percent at 149.10 euros by 0840 GMT.
"The good news is that VW makes another important step to
solve the dieselgate issue in the U.S. but the financial impact
seems higher than so far expected by capital markets," DZ Bank
analyst Michael Punzet wrote in a note published on Wednesday.
The German group said the financial implications of the U.S.
deal exceed the 18.2 billion euros ($19.2 billion) it has set
aside to cover the costs of its wrongdoing, adding it has yet to
quantify the impact of the deal on 2016 group results.
Most analysts had expected the U.S. deal, which VW had raced
to conclude before the Obama administration bows out on Jan. 20,
to cost the carmaker around 3 billion euros.
VW admitted in September 2015 to installing secret software
in hundreds of thousands of U.S. diesel cars to cheat exhaust
emissions tests and make them appear cleaner than they were on
the road, and that as many as 11 million vehicles could have
similar software installed worldwide.
The carmaker's supervisory board is set to meet on Wednesday
to approve the deal.
($1 = 0.9472 euros)
(Reporting by Andreas Cremer; Editing by Mark Potter)