Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2009 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Porsche's takeover of VW facing delays?]]>http://www.autoblog.com/2009/04/07/porsches-takeover-of-vw-facing-delays/http://www.autoblog.com/2009/04/07/porsches-takeover-of-vw-facing-delays/http://www.autoblog.com/2009/04/07/porsches-takeover-of-vw-facing-delays/#commentsFiled under: , , ,

With present economic conditions shrinking Porsche's available cash, the automaker may have to adjust or delay its plans to gain full control of Volkswagen. In January, Porsche raised its stake in Volkswagen to 50.76% gaining a majority stake. The Stuttgart-based automaker wants to purchase more of VW, but it stressed that economic conditions must support the move.

The economy isn't the only thing keeping the family-owned automaker from proceeding. Even though Porsche has the ownership it needs in VW, the German government isn't immediately changing its position on Volkswagen Law, allowing Lower Saxony to keep a blocking minority vote. Most experts think Porsche will simply wait out the economy and wait for the VW Law, already criticized by the European Commission, to be removed. Time appears to be on Porsche's side, for now.

[Source: Wall Street Journal]

Porsche's takeover of VW facing delays? originally appeared on Autoblog on Tue, 07 Apr 2009 17:59:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Lower SaxonyLowerSaxonyPorsche mergerPorsche purchasePorscheMergerPorschePurchasevolkswagenVolkswagen LawVolkswagenLawVW LawVwLawTue, 07 Apr 2009 17:59:00 EST<![CDATA[Porsche and Piech families bury the hatchet, will probably be dug up again...]]>http://www.autoblog.com/2008/10/28/porsche-and-piech-families-bury-the-hatchet-will-probably-be-du/http://www.autoblog.com/2008/10/28/porsche-and-piech-families-bury-the-hatchet-will-probably-be-du/http://www.autoblog.com/2008/10/28/porsche-and-piech-families-bury-the-hatchet-will-probably-be-du/#commentsFiled under: ,



Dr. Wolfgang Porsche, the head of Porsche Holding, and Porsche's group works council chairman Uwe Huck took time to answer Porsche staff questions about the impending takeover of VW. It appeared to go well enough: Wolfgang said the Porsche and Piech families met, and Ferdinand Piech, the head of VW, "clearly stated that he unreservedly supports the course of Porsche Automobil Holding SE in all points and is fully and entirely behind the chairmen." It was also said that Piech did not support the committee formed to approve Porsche and Audi cooperation, that the co-detemination agreement between Porsche and VW would remain fair to the larger and smaller company, and that the VW Law would be struck down.

The only thing missing from the love fest was... Ferdinand Piech. The VW chief and supposed cause of much of Porsche's troubles didn't attend -- his sentiments were conveyed by Dr. Porsche with peculiar phrasing. For instance, even though Porsche said Piech didn't approve of the technology sharing committee, Piech purposely didn't attend the meeting that cast the votes. It all sounded good, but until Piech is forced to sit down in public and decide one way or another, we'll wait for the next turn in the soap opera before we assume everything is safe. You can check out the details of this latest turn in the press release after the jump.

[Source: Porsche]

Continue reading Porsche and Piech families bury the hatchet, will probably be dug up again...

Porsche and Piech families bury the hatchet, will probably be dug up again... originally appeared on Autoblog on Tue, 28 Oct 2008 07:57:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>porscheporsche buying vwPorscheBuyingVwvolkswagenvwvw lawVwLawTue, 28 Oct 2008 07:57:00 EST<![CDATA[Porsche plans to take absolute control of VW November 26]]>http://www.autoblog.com/2008/10/07/porsche-plans-to-take-absolute-control-of-vw-november-26/http://www.autoblog.com/2008/10/07/porsche-plans-to-take-absolute-control-of-vw-november-26/http://www.autoblog.com/2008/10/07/porsche-plans-to-take-absolute-control-of-vw-november-26/#commentsFiled under: ,


For a few years there at large profile gatherings in America - especially sporting events - people wielding signs that referenced the Bible passage "John 3:16" and said things like "Be prepared" and "The end is nigh" were a common sight. We wouldn't be surprised if signs began showing up around VW headquarters that read "He is coming, 26-11-08." But the "he" they'd be referring to is Wendelin Wiedeking, CEO of Porsche, now that Porsche has announced its plans to take a greater-than-50-percent share in VW before the end of November.

Porsche's annual meeting is on November 26. The company hasn't said how big a stake it plans to take, nor when it will be doing the taking, but it's apparently ready to get this whole VW-ownership escapade into an endgame. There are still legal issues and technical challenges and Lower Saxony to deal with, but we have a feeling it's going to be a lot more difficult to argue with the phrase "absolute majority."

[Source: Automotive News, sub. req'd]

Porsche plans to take absolute control of VW November 26 originally appeared on Autoblog on Tue, 07 Oct 2008 17:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>europegermanylower saxonyLowerSaxonyporscheporsche buying vwporsche buys volkswagenPorscheBuyingVwPorscheBuysVolkswagenvolkswagenvwvw lawVwLawTue, 07 Oct 2008 17:59:00 EST<![CDATA[VW and Porsche can't get along, risk future tech and product plans]]>http://www.autoblog.com/2008/10/01/vw-and-porsche-cant-get-along-risk-future-tech-and-product-pla/http://www.autoblog.com/2008/10/01/vw-and-porsche-cant-get-along-risk-future-tech-and-product-pla/http://www.autoblog.com/2008/10/01/vw-and-porsche-cant-get-along-risk-future-tech-and-product-pla/#commentsFiled under: , , ,



In the land of mergers and acquisitions, there are takeovers, there are hostile takeovers, and then there are I'm Gonna Git You Sucka No Matter What takeovers. Porsche's increasingly acrimonious battle to swallow VW is becoming that third option, and the brawl might threaten the short term plans of Porsche, VW and Audi. Porsche wants access to Audi engines and electronics, but VW, which owns more than 99-percent of Audi, won't allow it.

Porsche has de facto control of VW, with a 35.1-percent share. The so-called VW Law, which allows the government of Lower Saxony ultimate veto power even though it has only a 20-percent share, has been the broadsword that both VW and Germany have been using to keep Porsche at bay. The law has been struck down at least three times by the EU Commission and a German Court, only to have politicians figure out how to rewrite it without changing the substance of it.

VW's supverisory board recently declared it would need to approve any sharing between Porsche and Audi, and at the moment, Porsche can't overrule that decision. Ferdinand Piech, the head of VW, is in a battle with the Porsche family and Wendelin Wiedeking, the CEO of Porsche, over control, and neither is expected to budge. The risk is that since no one knows how this is all going to play out, a battle of egos and punitive reactions could interrupt development of and platform sharing between - and therefore the profits of - all three manufacturers' future products and technology.

[Source: Automotive News, sub. req'd]

VW and Porsche can't get along, risk future tech and product plans originally appeared on Autoblog on Wed, 01 Oct 2008 09:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>euroeuropelower saxonyLowerSaxonyplatform sharingPlatformSharingporscheporsche vwPorscheVwtechnologyvolkswagenvwvw lawVwLawWed, 01 Oct 2008 09:30:00 EST<![CDATA[Porsche gobbles up more of VW while takeover is delayed]]>http://www.autoblog.com/2008/06/20/porsche-gobbles-up-more-of-vw-while-takeover-is-delayed/http://www.autoblog.com/2008/06/20/porsche-gobbles-up-more-of-vw-while-takeover-is-delayed/http://www.autoblog.com/2008/06/20/porsche-gobbles-up-more-of-vw-while-takeover-is-delayed/#commentsFiled under: ,


A procedural glitch, as opposed to Berlin-based intrigue, has postponed Porsche's plan to take over Volkswagen. The EU Commission requires a company to have a controlling interest in a company, or at least an agreement for such, before it will consider a company's application for regulatory approval. To straighten things out, Porsche has raised its stake in VW from 30.6 percent to 35.5 percent, which effectively grants it control of the much larger carmaker.

There's still that issue of the Volkswagen Law and Lower Saxony's refusal to give up the fight for its minority-majority stake. Lower Saxony, the state that is home to VW and 150,000 workers who don't want to lose their jobs, just bought another 500,000 shares in VW to maintain its position.

The EU Commission, however, has already said that Lower Saxony cannot use the VW Law to maintain control. That makes Porsche the fox outside the henhouse, waiting on the inevitable moment when EU officers will come and unlock the doors. Even better for the sports car maker, because Porsche hedged the purchase of its VW stake with cash-settled derivatives, it is assumed to have only spent a "a fraction" of the published price for controlling interest.

[Source: Automotive News, sub req'd]

Porsche gobbles up more of VW while takeover is delayed originally appeared on Autoblog on Fri, 20 Jun 2008 08:59:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>eulower saxonyLowerSaxonyporscheporsche buying vwPorscheBuyingVwvolkswagen lawVolkswagenLawvwvw lawVwLawFri, 20 Jun 2008 08:59:00 EST<![CDATA[The Volkswagen Law returns]]>http://www.autoblog.com/2008/05/23/the-volkswagen-law-returns/http://www.autoblog.com/2008/05/23/the-volkswagen-law-returns/http://www.autoblog.com/2008/05/23/the-volkswagen-law-returns/#commentsFiled under: , , ,


The Volkswagen Law is doing its best impression of Lazarus -- or perhaps a better analogy would be whack-a-mole. The European Court and minority VW shareholder Porsche keep trying to kill it, but it keeps popping up. Now the German government has agreed on an altered VW law -- but one that still gives the state of Lower Saxony, with it's 20.1-percent holding, blocking minority power.

The government runaround appears to hinge on the fact that the EU Court, in striking down the law, specifically cited the "20-percent cap on shareholder voting rights" as cause for striking down the VW Law. So the German government scrapped that, but retained the part where important decisions would need more than 80-percent of shareholders' approval. Which means Lower Saxony stays in control.

With VW keeping about 150,000 people in jobs, it's understandable that the state government is trying to stay in the saddle. A German Justice Ministry spokesman said "We believe our draft law is compatible with European law." An EU Court spokesman said, "The Commission expects that all three provisions and therefore the blocking minority as well will be abolished in order to implement the court's judgment." One of those two parties is eventually going to end up eating its words.

[Source: Automotive News, sub. req'd]

The Volkswagen Law returns originally appeared on Autoblog on Fri, 23 May 2008 12:35:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>lower saxonylower saxony volkswa...LowerSaxonyLowerSaxonyVolkswa...porschevolkswagenvwvw lawVwLawFri, 23 May 2008 12:35:00 EST<![CDATA[Porsche stake in VW unlikely to change soon; a new "VW law" could return]]>http://www.autoblog.com/2008/01/29/porsche-stake-in-vw-unlikely-to-change-soon-a-new-vw-law-coul/http://www.autoblog.com/2008/01/29/porsche-stake-in-vw-unlikely-to-change-soon-a-new-vw-law-coul/http://www.autoblog.com/2008/01/29/porsche-stake-in-vw-unlikely-to-change-soon-a-new-vw-law-coul/#commentsFiled under: , , ,



The so-called "VW law" was struck down by the European Court last October. Previous to that, the state of Lower Saxony was able to veto any Volkswagen shareholder action it didn't like. When the law was struck down it looked like the Lower Saxony had no choice but to watch Porsche, which had been circling shark-like around Volkswagen for a bit, decide on the day it chose to take majority control of the much larger company.

But Lower Saxony had a much bigger shark on its side in the form of the government in Berlin. Politicos in the German capital have been drafting a law that would "replace" the "Volkswagen law" and put Lower Saxony, with its 20.1-percent holding in VW, back in effective control of the company. The law still has hurdles to overcome, such as approval by the German parliament and then approval by the EU. Frankly, we don't see how the EU could approve the law if it artificially inflates the state's position over that of a shareholder. Porsche is going to wait for the law, and elections in Lower Saxony, to run their courses before proceeding with its efforts to take a majority stake. Der Saga continues.

[Source: Automotive News - Sub. Req.]

Porsche stake in VW unlikely to change soon; a new "VW law" could return originally appeared on Autoblog on Tue, 29 Jan 2008 18:28:00 EST. Please see our terms for use of feeds.

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