German State May Sell Some Of Its VW Stake

Government of lower Saxony says it might sell some of its Volkswagen shares by 2013 but will keep at least a 20.01 percent of the carmaker to keep its veto over management plans.

BERLIN (AP) -- A German state says it might sell some of its Volkswagen shares by 2013 but will keep at least a 20.01 percent of the carmaker to keep its veto over management plans.

The government of lower Saxony announced Monday it will sell euro600 million ($791 million) worth of state property possibly including some of its VW shares.

But Governor David McAllister added that he will consider such a move only if Lower Saxony's VW share increases in the course of the car maker's merger with Porsche which is to be concluded in 2011.

The state is running a budget deficit and its plans to sell property or company shares are part of an effort to generate money.

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