Last week we reported on Porsche’s interest in buying a controlling stake in Volkswagen. The only thing really standing in the way of Porsche’s goal was the antiquated VW law which stipulated that regardless of how much stake a single entity holds, its voting block cannot be greater than 20%. Porsche currently owns a 31% stake, but despite this fact, it was unable to exercise its voting powers to their full potentials. Volkswagen’s home state of Lower Saxony owns 20.1%,thus holding a majority stake and the power to influence the company’s decision making. Under the VW Law Lower Saxony held the power to block any decision that would threaten its jobs and local economy.

Today, the European Court struck down the VW Law, and many now expect Porsche to increase its stake to a controlling 51%. Having been extremely patient up until now, they don’t seem to be in any hurry. In fact, Porsche may not make a move until the first fiscal quarter of the new year.

Keep checking Driver’s Life for new developments in this saga.

[Source: Autoblog]