Norwegian fund renews its attack on Vw’s planned takeover of Porsche

Article by Christian A., on August 25, 2010

Despite analysts' warnings that nothing will come of its protests, Norway's state fund -- Norges Bank Investment Management -- renewed its attack on Volkswagen AG's impending takeover of parts of Porsche Automobil Holding SE. Norway's $420 billion wealth fund, one of the biggest sovereign wealth funds (SWF) worldwide, is a VW investor.

The state fund referred to VW's plan as "costly and opaque" and stated that it would be taking a more activist approach to shareholdings in its portfolio.

Anna Kvam, head of corporate governance at Norway 's state fund, said that it intends to uplift the rights of minority shareholders and raise standards of corporate governance and sustainability in the firms it owns.

The state fund's move is not without its share of detractors. Some analysts cautioned investors that want to oppose VW that it is a partially state-owned entity with strong unions.

Hence, VW is operating under laws that shield the company from unwanted pressures. UniCredit analyst Christian Aust said that since VW has a shareholder structure with clear majorities, there's nothing the investors can do to effect any change.

Commerzbank's Daniel Schwarz has the same opinion, saying that if the takeover is done legally, minority investors will find it "very difficult" to change any aspect of the deal.

Topics: vw, porsche, norway, takeover

If you liked the article, share on:

Comments

Recommended

In 2014, Jaguar Land Rover’s Special Vehicle Operations revealed the F-Type Project 7. At that time, it was said to be the fastest accelerating road car carrying a 5.0-liter Supercharged...
by - May 29, 2017
There is an ongoing rumor going around the automotive community, and it’s aimed at BMW. The rumor? The German marque has reportedly axed the i5 Electric vehicle concept. These supposed...
by - May 29, 2017
Volkswagen's yearly Worthersee affair that happens in Austria is considered a hotbed for all types of cars from the German company's long and renowned history. Most of the gathering features...
by - May 29, 2017
Behold, the Rolls-Royce Sweptail! The Sweptail is probably the biggest two-seater car that has ever been built. It may look odd at first glance, and you may not be fond...
by - May 29, 2017
BMW just keeps on getting bigger and bigger, in terms of their lineup I mean. Just after unveiling the 8 Series Concept, they are now teasing us with an M8...
by - May 29, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries