June 7 (Bloomberg) -- Volkswagen AG, Europe's largest carmaker, denied a report it will probably buy a controlling stake in a unit holding the assets of Malaysian carmaker Proton Holdings Bhd.

``This report is definitely wrong and only rumor without substance,'' said Andreas Meurer, a Volkswagen spokesman, in a phone interview today. ``We will have a round of talks soon.''

The Edge Financial Daily in Malaysia said today Volkswagen may buy a 51 percent stake in a newly formed unit that will own Proton's manufacturing, research and development and engineering divisions.

To contact the reporters on this story: Chad Thomas in Berlin at cthomas16@bloomberg.net; Angus Whitley in Kuala Lumpur at awhitley1@bloomberg.net

Last Updated: June 7, 2007 01:45 EDT