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Porsche ‘In No Hurry’ To Increase VW stake

Most observers expect it's only a matter of time before the luxury automaker moves to increase its 31 percent stake in Volkswagen AG.

STUTTGART, Germany (AP) — Porsche AG's chief executive said Wednesday that his company has made no decision on whether to raise its stake in fellow German automaker Volkswagen AG and suggested that it was in no hurry to make a move.
 
Speculation that Porsche would move to take a majority in Volkswagen has been rampant since the European Court of Justice ruled last month that Germany's so-called ''VW law'' had illegally shielded Volkswagen from any takeovers.
 
Porsche is Volkswagen's largest shareholder and has built up a 31 percent stake.
 
At an employee council meeting in Stuttgart, CEO Wendelin Wiedeking said there was no decision so far to increase that stake.
 
''We are not under time pressure,'' he said.
 
Volkswagen's second-biggest shareholder is the state of Lower Saxony, where Volkswagen's Wolfsburg headquarters is located, which holds just more than 20 percent.
 
With more than 51 percent combined, the two could block any foreign takeover.
 
But Porsche has been profiting from its stake in VW, and most observers expect it is only a matter of time before it moves to increase its shares further.
 
Volkswagen shares were down 1.6 percent at euro162.02 (US$238.56) in late Frankfurt trading. Porsche shares declined by 5 percent to euro1,329.96 (US$1,958.21).
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