Porsche set to take Control of Volkswagen
October 24, 2007 by Alborz Fallah
The European Court has ruled a 40 year old law that protects Volkswagen from foreign takeovers as illegal, paving the way for Porsche to increase its stake in Europe’s biggest carmaker.
Under the VW Law, a majority of 80 percent is required to pass important company decisions. Giving power to a single shareholder with 20 percent of the vote to block them.
The VW Law, originating from the 1960s goes against European rules on the free movement of capital by restricting shareholders’ rights, the court said. The European Commission believes that the state of Lower Saxony, which currently holds around 20 percent of VW stock, enjoyed special powers as a result of the legislation.
While some in the industry believed the conservative law had lent the company a degree of stability over the decades, allowing Volkswagen to expand through acquisitions and to pursue its platform sharing strategies, others disagree.
Lower Saxony has been focused particularly on safeguarding local jobs and the regional economy according to some analysts.
“It was supposed to be good for stability for the workers but I am not sure it has worked out that way,” said an analyst at Natixis Securities.
Porsche will undoubtedly increase its stake in Volkswagen to 51 percent from 31 percent at the company’s next scheduled supervisory board meeting on November 12.
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This is amazing given that only 10 years ago Porsche was about to go out of business.
Either way Volkswagen and Porsche belong together.
now instead of saying that those who have a porsche a driving a beetle whoever has a VW can say they are driving a porsche.
Bring on the new Polo 911…LOL !
If this is so. They should now change the Golf GTi to Golf 911 Turbo. :)
Porsche Cayanne Combi Lol
So arse-about-face engine rules the world, eh?
Welcome back the people’s car
I believe VW also own Laborghini so the new name could be
Por-Lamb-sch-agen
Looks like Bringing back the rear-mounted engine Beetles and Kombis!
damn that porsche company….so profitable
Yaaaaa,were back on line!!!!!!!
So how much is VW worth and how is Porsche now worth??????
Ive always called 911s VWs anyway!!!!!!!Guess I was right!
The Beetle was Hitlers revenge……Looks like Porsche got theirs on Lambo!