Porsche in bid to take over Volkswagen

The luxury brand already holds over a 27 per cent stake in the volume carmaker. Ferdinand Piech, a descendent from the Porsche family, is expected to be re-elected as VW chairman, after the state of Lower Saxony – the carmaker's second biggest stake holder – ended hostility to his re-election. This will result in the luxury marque taking both the chairmanship and a third seat on VW's advisory board. The European Court of Justice has recently been advised that German legislation protecting Volkswagen from takeover contravenes EU rules. The advocate-general to the court said the 1960 privatisation law effectively prevents foreign investors intervening in the management of Europe's largest car manufacturer, obstructing free movement of capital in the European Union. While Porsche's supervisory board had agreed to bid for an increased 29.9 per cent stake of VW, chief executive Wendelin Wiedeking said he had “no plans” to launch a take-over bid. However, analysts suggest it is inevitable Porsche will out-vote the protectionist state of Lower Saxony and complete a take-over. With the increasing likeliness of the privatisation law being repealed, it would be more politically acceptable for VW to agree to a German carmaker controlling it rather than an outsider.