Exploring Corporate Governance Around the World

By Allison Garrett, Senior Vice President for Academic Affairs at Oklahoma Christian University

Monday, September 26, 2005

VW and Porsche

The European Commission challenged a 40 year-old antitakeover law in Germany, arguing that the law -- known as the VW law -- circumvents the EC's treaty on the free flow of capital. The law prevents shareholders from acquiring more than 20% of the voting rights in VW stock and sets a supermajority requirement of 80% for significant decisions.

Porsche is taking the preemptive step to acquire VW stock to protect its own interests. It is concerned that the relationship between the companies would be damaged if VW were acquired by a hostile bidder.


1 comment:

Anonymous said...

porsche cayenne pictures - information and videos