• Germany's news in English

US lawsuit could delay VW takeover of Porsche

The Local · 19 Oct 2010, 10:28

Published: 19 Oct 2010 10:28 GMT+02:00

Facebook Twitter Google+ reddit

"We cannot rule out that the proceedings may take a while yet until a final ruling is handed down," Winterkorn told a general assembly of Porsche shareholders in this southwestern German city

"For this reason, there could be a delay with the planned merger. Let me be quite clear about this: the integrated automotive group will happen."

VW had planned to wrap up its takeover by next year, and it was the first time anyone has spoken of a possible delay.

As part of the complex deal that will see Porsche's holding group also own shares in VW, Porsche shareholders will be asked to approve a capital increase worth €5 billion ($6.95 billion) in late November.

Winterkorn warned that a "tax hurdle" might also delay the tie-up.

Porsche faces legal action by around 30 US investment funds which accuse the German car maker of having manipulated the stock market in 2008 and hiding its intentions when it attempted to take over VW.

The value of VW shares spiked above €1,000 at the time, forcing some investment funds to unwind speculative positions in a hurry, and they have sued for around $2 billion in damages and interest.

But the maker of the iconic 911 sports car rejects those charges, and Winterkorn said he considered them "inadmissible and without merit."

"We firmly believe that the facts are on our side and that we have the better case in all of these legal issues," he added.

Story continues below…

Porsche took on heavy debt as it tried to buy the much bigger VW but then had to be saved in turn by Europe's biggest automaker, which now owns 49.9 percent of Porsche.

VW expects to complete the takeover and make Porsche the VW group's 10th brand.


The Local (news@thelocal.de)

Facebook Twitter Google+ reddit

Your comments about this article

Today's headlines
Couple accused of torturing, murdering women go on trial
The so-called 'house of horrors' in Höxter where the couple allegedly tortured and killed women. Photo: DPA.

A couple accused of luring women to their village home with personal ads started trial on Wednesday over charges that they tortured and killed at least two of their victims.

After July attacks, govt drafts new video surveillance law
Photo: DPA

The Interior Ministry is drafting a law which will enable public spaces to be filmed for surveillance purposes as a reaction to deadly attacks in July, according to a newspaper report.

Eurowings union threatens cabin crew strike for Thursday
Photo: DPA.

A union representing cabin crews on Lufthansa's budget airline Eurowings has announced that strikes will start as of Thursday if ongoing contract negotiations continue to falter.

Merkel: murky internet giants distort perception of reality
Angela Merkel. Photo: DPA.

Chancellor Angela Merkel called on Tuesday for internet giants to make public their closely-guarded algorithms, claiming that they are not giving people diverse enough information.

Pegida leader 'paid court costs with group's money'
Pegida leader Lutz Bachmann. Photo: DPA.

The leader of the anti-Islam movement reportedly used money from Pegida's coffers to pay for two personal court cases, German media reported this week.

Anger as Berlin scraps Turkey concert on Armenia genocide
The Dresden Symphony Orchestra. Photo: DPA

Germany's foreign ministry Tuesday scrapped a planned symphony performance on the Armenian "genocide" in its Istanbul consulate, sparking accusations that it was caving in to Turkish pressure.

Obama to visit Berlin in last presidential trip to Germany
President Barack Obama and Chancellor Angela Merkel during a Berlin trip in 2013. Photo: DPA.

The White House announced on Tuesday that US President Barack Obama will be paying one last unexpected visit to the German capital - his last before he leaves office.

Hostility towards minorities 'widespread in Bavaria'
A village in southern Bavaria. Photo: DPA.

Hate and hostility towards groups deemed to be different are not just sentiments felt by fringe extremists, a new report on Bavaria shows.

Hated RB Leipzig emerge as shock challengers to Bayern
RB Leipzig. Photo: DPA

RB Leipzig's remarkable unbeaten start to the Bundesliga season has seen them suddenly emerge at the head of the pack chasing reigning champions and league leaders Bayern Munich.

Munich taxi driver in hospital after attack by British tourists
Photo: DPA

A taxi driver had to be hospitalized in Munich on Monday evening after three British tourists refused to pay their fare and then attacked him.

Germany's 10 most weird and wonderful landmarks
Sponsored Article
Last chance to vote absentee in the US elections
10 things you never knew about socialist East Germany
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
Eleven famous Germans with surnames that'll make your sides split
The best ways to get a visa as an American in Germany
jobs available
Toytown Germany
Germany's English-speaking crowd