* Places 5.8 mln pref shares on behalf of Waddell & Reed
* Sold at 158 euros per share
* Placing is several times oversubscribed
* 5.8 mln shares equate to 3.4 pct of all pref stock
* VW shares down 3.3 pct, hit lowest in four months (Rewrites first paragraph, writes through)
By Christiaan Hetzner and Edward Taylor
FRANKFURT, March 15 One of Volkswagen AG's biggest institutional investors has sold over $1 billion worth of stock in the German carmaker in a placing organised by Deutsche Bank AG.
The shares were sold to over 150 institutional investors in Europe, Asia and the United States in an offering which was several times oversubscribed, a source familiar with the deal said on Friday.
Volkswagen shares were down 3.3 percent at 159.3 euros by 1345 GMT, the biggest decliners in Germany's blue-chip DAX index , after falling as low as 159.1 euros, their lowest since November.
Deutsche Bank placed the 5.8 million Volkswagen preference shares, worth around 914 million euros ($1.2 billion), on behalf of U.S. institutional asset manager Waddell & Reed at a price of 158 euros per share.
The deal was done via an underwritten accelerated bookbuilding, a process in which an investment bank looks to quickly unload a parcel of shares with little or no pre-marketing.
Volkswagen declined to comment. No-one at Waddell & Reed could immediately be reached for comment.
The VW share sale represents 3.4 percent of the company's preference shares in circulation, according VW's website.
According to Thomson Reuters data, Waddell & Reed had been one of the two biggest individual holders of VW preference shares, the other being Gulf-based sovereign wealth fund Qatar Holding LLC which owns 26.36 million.
Waddell & Reed Investment Management had owned 6.85 million shares before Friday's sale.
($1 = 0.7704 euros) (Additional reporting by Arno Schuetze, Kirsti Knolle and Jan Schwartz; Editing by Jane Merriman and David Holmes)
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