Thursday, January 31, 2008

German government may replace Volkswagen Law; Porsche sitting tight

After the European Court ruled against the Volkswagen Law late last year, Volkswagen has been open to takeover bids, the favourite of which is Porsche. Though Porsche hasn't really said they will pursue a takeover of Volkswagen, the ruling against the Volkswagen law has made it possible for them to do just that.

But it may not be that easy. the German government is apparently drafting a "replacement" to the Volkswagen Law, thus returning effective control to Lower Saxony, which owns 20.1 stake in Volkswagen.

Now, of course, just because a law is being drafted doesn't mean it automatically passes. The law has to pass in the German parliament and the EU, which of course judging by the way they felt about the original Volkswagen Law, will most likely not be approved. Nonetheless, Porsche is sitting tight before deciding anything.

Source: Autoblog

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