(Corrects first paragraph of story originally published yesterday to show that reduction was only for preferred stock.)

Nov. 9 (Bloomberg) -- Qatar Holding LLC, part of the country’s sovereign wealth fund, plans to sell as much as 25 million of its preferred shares in Volkswagen AG, or about half its holding in the carmaker’s non-voting preference stock.

The fund still plans to increase its holdings in the Wolfsburg, Germany-based automaker’s common shares to 17 percent, according to an e-mailed statement. Units of Credit Suisse Group AG and Goldman, Sachs & Co. will act as joint bookrunners in the sale of preferred shares.

Qatar Holding’s decision comes after the preferred shares increased 88 percent this year to 71.50 euros ($107.28) a share. The move also comes as Volkswagen attempts to sell as many as 135 million non-voting preferred shares to help pay for a stake in Porsche Automobil Holding SE.

“We have a high regard for the company and are supportive of its plans to pursue a merger with Porsche,” a company official said in the statement.

Volkswagen aims to buy a 49.9 percent stake in Porsche’s carmaking operations for 3.9 billion euros by the end of the year. VW will seek shareholder approval on Dec. 3 for the sale.

To contact the reporter on this story: Alex Ortolani in Southfield, Michigan, at aortolani1@bloomberg.net

Last Updated: November 10, 2009 05:40 EST