According the Advocate General Damaso Ruiz-Jarabo Colomer, " The approach of the German government is not based on reasons of public interest. " While not binding, but the full court supports the EU Advocate General at abut 80 percent of the EU cases.
The the court has also released a statement saying, " German law discourages those who wish to acquire a significant number of shares of the company. " The decision is scheduled to leave later this year. The case of Volkswagen in law is realizing most of the people as a kind of test to see how far the EU is the ability of government to protect the companies they considered important for its legal advice to Volkswagen the right economy.
The are not new since it was initiated by the European Commission in 2005, when it took Germany to court. Since then, the argument about the decades-old law did not stop. Volkswagen law was created to protect Europe, the largest foreign acquisition of an automobile which was seconded by German politicians and unions saying that the bill VW vai help ensure the stability of company.
" The VW law has has proven its value since it has contributed to the welfare of the company and its employees ", said Juergen Peters, head of Germany, the largest industrial company union.
But despite the votes of Germany, has to politicians and unions, the European Commission expressed its opposition to the provisions of the 1960 Volkswagen Law, which limits a shareholder the right to vote to 20%, regardless of the number of VW shares them more majority voting of 80% was important Porsche AG decisions.
It past November 2006, when expressed its willingness to increase their shares in Volkswagen AG to prevent hostile takeover bids from other foreign investors. It should be noted that Porsche has 27.4% stake in VW and with the addition of another 30% will allow the former acquiring a full bid.
The second largest shareholder in VW is the state of Lower Saxony, which is the same place where the automaker & 39; S Wolfsburg headquarters is situated. State Governor Christian Wulff make sure that even if the law is abolished would not have any negative impact on the company from Porsche and Lower Saxony can prevent any attempts acquisition. Porsche " & 39; s taking a stake in the company means there would be negative consequences if the VW law is struck down ", Wulff said in an interview with Neue Presse daily.
Volkswagen Europe is the largest manufacturer of cars and the famous Volkswagen Passat pieces. Its headquarters is in Wolfsburg, Germany. VW is currently ranked fourth in the world& 39;s largest automaker, next to GM, Toyota and Ford.
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