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Troubled luxury carmaker Porsche has turned down the advances of its humbler German cousin Volkswagen. It is rejected an offer for 49.9 percent because it would effectively trigger the repayment or renegotiation of an almost 11 billion euro credit facility. Porsche is burdened with some 9 billion euros in accumulated debt.

The two companies had been in talks over a merger would draw together Porshe cars cars Volkswagen brands including Skoda, Audi and Bentley. Chairman Wolfgang Porsche said the offer from VW was “not feasible.” Analysts say the rejection reveals the extent of the restrictions Porsche is under because of its loan deals. The German State of Lower Saxony owns 20 percent of VW and had been pushing the iconic German firms to reach a deal.

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