Mochamad Ircham told Reuters a report in the Bisnis Indonesia newspaper that Hutomo "Tommy" Mandala Putra would sell his 60 per cent stake in the Italian luxury Sports car maker to VW was false.

"He has no plans to sell his stake in Lamborghini," said Ircham, spokesman for Mandala Putra's PT Timor Putra Nasional car company. He added that Mandala Putra was, however, on the lookout for investors to inject extra funds into Timor.

Ircham said he had been misquoted by Bisnis Indonesia,which quoted him as saying the Lamborghini stake was being sold to provide extra cash for Timor.

The remaining 40 per cent stake in Bologna-based Lamborghini, one of the world's most prestigious Sports car names, is held by Malaysia's Mycom Bhd.Car industry analysts have speculated VW could be interestedin Lamborghini after the German firm's chairman Ferdinand Piech said he was looking at possible luxury acquisitions on top of his bid for Britain's venerable Rolls-Royce Motor Cars.

Since Suharto's resignation on May 21, his family have faced calls to return some of their wealth and their business interests have come under close scrutiny.

Shares in Suharto-linked companies have been hit by heavy selling pressure, with investors fearing favourable treatment the companies may have received in the past is over and they now face a much harsher business environment.

Mandala Putra's Timor car project, launched in 1996 to produce an Indonesian national car, came under fire even before Suharto's resignation because of its exemption from import duty and tax, which made it about 60 per cent cheaper than other cars in its class in Indonesia.

Timor car showrooms were targeted during the riots which ravaged Jakarta this month, along with other properties and businesses linked to the Suharto family.

Lamborghinilast month denied reports that it was about to be sold to VW's Audi subsidiary, although Audi has said it has been discussing co-operation with the Italian firm.

Unions at Lamborghini say the company needs a rapid capital infusion or could collapse. They have urged Lamborghini's owners to come up with 80 billion lire ($45.5 million) in funding to stop the business going bust.