Friday April 25, 04:59 PM
Porsche ponders legal action against VW general assembly
BERLIN (AFP) - The German luxury sports car maker Porsche (Xetra: 693773 - news) said Friday it had formally opposed the results of a Volkswagen (Xetra: 766400 - news) shareholders general assembly, a move that could allow it to later file a formal complaint.
"We have opposed them. We are therefore keeping all our options open for possible action later on," a Porsche spokesman told AFP.
The company now has four weeks during which it can file a formal complaint against the results the general assembly, which rejected a Porsche attempt to reduce leverage held over VW decisions by the German state of Lower Saxony.
Porsche owns 31 percent of the shares in VW, the biggest European carmaker, while Lower Saxony, where VW is based owns just over 20 percent.
Porsche, which wants to take full control of VW, had tried to amend by-laws that require strategic VW decisions such as plant relocations to be approved by at least 80 percent of the shareholders.
The clause gives Lower Saxony a virtual veto over such moves.
But the German state also failed in its own attempt to have the clause extended, leaving the VW with an uneasy status quo.
A so-called VW Law that was designed to protect the company from takeovers and contains the disputed clause was rejected in October by a European Union court.
But the German federal government is working on an amended law that would preserve Lower Saxony's leverage.
That effort has been sharply criticized by both Porsche and the European Commission.
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