Porsche to take control of VAG

[peter at thescirocco.com (Peter)]

Definitely good!

Porsche and VW has been having an affair since forever and now they're 
finally getting hitched. ;)

AUTO UNION!!!

Peter

Peter - 302.832.8989
http://thescirocco.com
----- Original Message ----- 
From: "Nate Mellom" <doubt@inwave.com>
To: "Scirocco list" <scirocco-l@scirocco.org>
Sent: Wednesday, February 14, 2007 10:43 PM
Subject: Porsche to take control of VAG


> Good/bad for VAG?
> We'll see!
>
>
> Porsche is ready to take control of Volkswagen following a ruling in the 
> European Union's top court yesterday that will scrap a German law 
> protecting VW from takeovers.
>
> The advocate general at the European Court of Justice ruled that the 
> so-called "Volkswagen Law" prevented the free flow of capital.
>
> The law was established in the 1960s to prevent foreign takeover of VW, 
> and to safeguard German jobs.
>
> It allowed the German state of Lower Saxony, in which VW is based, and 
> which owns a 20.8 per cent stake in the company, to safeguard VW and have 
> a say in its business.
>
> Porsche, under the guidance of chief executive Wendelin Wiedeking and 
> major shareholder Ferdinand Piech, has steadily been building its share of 
> VW.
>
> Currently it owns 27.4 per cent, and it has plans to buy 29.9 per cent. 
> However, as the law stood, even though Porsche owned almost a third of VW, 
> it could not exercise any more than 20 per cent of the voting rights.
>
> Wiedeking has been vocal in his criticism of VW's protected status. Now it 
> seems certain that Porsche will be able to take both the chairmanship of 
> VW's board and also a controlling interest on its supervisory board.
>
> Though Porsche is a far smaller car maker than VW in terms of volume, it 
> has profits only slightly lower than VW's.
>
> The European Court of Justice's ruling is currently only an initial 
> finding, but it is a near-certainty to become law within the next six 
> months.
>
> _______________________________________________
> Scirocco-l mailing list
> Scirocco-l@scirocco.org
> http://neubayern.net/mailman/listinfo/scirocco-l
>