Interesting stalemate. If Porsche drops 31% of shares VW becomes well done and gone. There is no way to sustain financial blow of that caliber. Will Porsche deliver the blow? Does it make sense to drop in huge sums of cash without any control of destiny of that cash? In hindsight makes you wonder what Porsche board was thinking (was it thinking?) when they dropped all that cash into VW. They could acquired Rover and Jaguar and become luxury empire. If they free cash from WV and wait till Ford folds all they need to put paws on is 5% of Ford distressed value in their class A shares, owned by Ford Foundation (family scions).

Porsche has 31%
Lower Saxony has 20%
I don’t see how Porsche has to buy the state’s share to reach 50$+!? How about the other 49%!?

Porsche needed VW to meet future MPG/emission/CO2 regulations. I am sure they have a back up plan.

This has nothing to do with CO2. It has everything to do with Euros. Lower Saxony has equivalent of class A shares in US nomenclature. Porsche can own remaining 80%, but they will not have decision power. Power of veto lies with shares owned by Lower Saxony. If Porsche will want to extend working week to 35 hours (from existing 28!) as in the rest of the Europe, Lower Saxony can (and probably will) veto it. Also decisions on where and how to build cars. It is not that Lower Saxony will want to ruin the company, but it has all the necessary means of protecting interest of state of Lower Saxony, not remaining 80% of invested capital.

Damn xyunya, now maybe you can use that wisdom of yours to finally get a job.

Just what the world needs, government interference in business, not.

HemiRetard, I don’t need a job. I am independently wealthy after some decent investments. I can afford to spend time posting here.

Maybe Max Moseley could get involved? Apparently he knows much about spanking bad Nazis.

So xyunya’s a drug dealer.

xyunya, why did Porsche want VW?

28 hr work week? WTF

HemiRetard, I am retired Air Force officer and investor. I can afford time to watch trading monitor and blog here. I don’t trade illegal drugs, I do gamble with coffee. Did I satisfy your curiosity? Now search for meaningful employment, you village idiot.

I thought that Porsche wanted to expand and accumulated enough war chest for acquisition. It is most used growth formula in business: growth by acquisition. There is also historical link between both companies since Ferdinand Porsche, grandpa of current Porsche CEO, designed the first WV car.

If Porsche would take over WV lifting working hours (28 per week) to EU standard (35) would have immediate effect on productivity (25%) and that would pay in itself for any acquisition cost associated with purchase.

Hey guys, I thought the whole point of this was that Germany passed a law specifically prohibiting Porsche from being able to buy the controlling shares of VW, which has nothing to do with what types of shares Lower Saxony holds. All this does is prove that Communism is still strong in Germany.

I don’t know if I’d rather work in Europe with a 28-hour work week or work for xyunya.

For now, can a European explain how the German cabinet can uphold a law that the European Court of Justice has struck down? Because the European Court of Justice heard the case in the first place suggests that that the Court has jurisdiction. Did the German cabinet pass a different version of the law.

Regardless, I’m guessing Porsche’s investment is still reasonably safe. The engine and platform development and sharing are certainly creatures of contract anyway, and not shareholder voting. There’s a symbiosis between the two companies that is not likely to deteriorate soon. And aren’t there Porsche “people” already on the VW Board?

xyunya… stop reading my comment and SELL, SELL!!

This article requires several clarifications.

The law hasn’t been upheld, it was modified after the European Union challenged the law on the grounds that it restricts free trade. After the court’s decision, the law was modified.

However, the EU has already threatened to challenged the modified version. The reason is that the new law reinstated the provision that requires MORE THEN 80 % of the votes for any strategic decision (80% + one vote). As Lower Saxony bundesland (county) has 20 percent, it basically retains the right to veto as there is NO way it would give up the control over largest European manufacturer and offer a single vote to approve changes.

Yours truly

Scarface, I am on buying spree today . Actually Ford maybe a short buy. I don’t have job for you so you better off working in Europe. Come to think of it, I don’t have a job for myself.

kitko, you are correct. The mechanics you described works similarly like shares classes in on NYSE exchange. It is the result that is the same: small by volume investors control destiny of the company and holdings of other investors.

My extra cans of virtual beer goes to all of you that took some time to explain the situation!
Thanks for clearing this up people!

Good, now lets get that Concept R into production.

post 11, Xanadu-Porshe is taking over the state of West Virginia, who knew?

Are we gonna live long enough to see Krauts fighting Krauts? I’ll buy ticket to see that.