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Porsche to wait until after holidays for VW takeover
November28
(from Leftlanenews)
The European Court of Justice ruled earlier this year that Germany cannot block the sale of Volkswagen because of what is dubbed as "VW law" — a regulation setup after World War II that protected Volkswagen AG from a hostile foreign takeover. The European Court of Justice found that the Federal Republic of Germany failed to allow the free movement of capital within the European Union. But despite the ruling, Porsche has yet to make a move to acquire VW.
According to Porsche CEO Wendelin Wiedeking, the automaker will wait until after the holidays to make any moves. "Christmas is the holiday of peace; let's create a little harmony," Wiedeking said.
But even come January, the acquisition could take some time. "Even now, none of the players involved knows how many moves will still be required and how long it will take until the game is finally over," Wiedeking added.
The ruling gave Porsche — VW's largest shareholder — the same voting rights as the German state of Lower Saxony — VW's second largest shareholder.
Porsche has been interested in acquiring a controlling stake of VW and the new ruling should allow for a takeover. Porsche is interested in access to VW's smaller vehicles in order to comply with stricter proposed emissions regulations. Earlier this year, Porsche threatened the European Union with legal action over the new regulations, but the purchase of VW will likely quell any threat of a law suit.
November28
(from Leftlanenews)
The European Court of Justice ruled earlier this year that Germany cannot block the sale of Volkswagen because of what is dubbed as "VW law" — a regulation setup after World War II that protected Volkswagen AG from a hostile foreign takeover. The European Court of Justice found that the Federal Republic of Germany failed to allow the free movement of capital within the European Union. But despite the ruling, Porsche has yet to make a move to acquire VW.
According to Porsche CEO Wendelin Wiedeking, the automaker will wait until after the holidays to make any moves. "Christmas is the holiday of peace; let's create a little harmony," Wiedeking said.
But even come January, the acquisition could take some time. "Even now, none of the players involved knows how many moves will still be required and how long it will take until the game is finally over," Wiedeking added.
The ruling gave Porsche — VW's largest shareholder — the same voting rights as the German state of Lower Saxony — VW's second largest shareholder.
Porsche has been interested in acquiring a controlling stake of VW and the new ruling should allow for a takeover. Porsche is interested in access to VW's smaller vehicles in order to comply with stricter proposed emissions regulations. Earlier this year, Porsche threatened the European Union with legal action over the new regulations, but the purchase of VW will likely quell any threat of a law suit.
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