Porsche suffers court setback on VW

FRANKFURT — A court on Thursday rejected an attempt by Porsche SE to have a provision struck from Volkswagen AG's statutes that gives VW's second-largest shareholder a blocking minority vote at the automaker.

The state court in Hannover rejected a suit by Porsche — VW's biggest shareholder — which attempted to end a peculiarity under which Lower Saxony's stake at just over 20 percent gives it the ability to block decisions.

The state of Lower Saxony is where VW's Wolfsburg headquarters is located.

Stuttgart-based Porsche holds more than 40 percent and aims to build up its stake to 75 percent next year.

Porsche argued that the threshold for a blocking minority should be 25 percent, keeping in line with standard German securities laws.

However, a state court in Hannover upheld Lower Saxony's argument that a European court ruling which struck down a long-standing law protecting VW from hostile takeovers does not affect the blocking minority.

Porsche spokesman Albrecht Bamler said his company, which already has effective control over Volkswagen, would appeal.

Shares of Porsche Automobil Holding SE were up 2.8 percent euro54 ($70), while VW shares were down 2.5 percent at euro287 in Frankfurt trading.

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