FRANKFURT (Thomson Financial) - Porsche AG is not considering splitting up Volkswagen AG should it take over the automaker, a Porsche spokesman, said denying a report in WirtschaftsWoche which said that Porsche is considering possibly breaking up the company.
'That is absolute nonsense. This information was completely made up. Whoever knows us, knows we are not even thinking about it,' press spokesman Albrecht Bamler told the dpa news service.
Citing unnamed sources, WirtschaftsWoche reported that Porsche was considering dismantling parts of VW to further increase profits and get rid of troubled units.
Speculation of a takeover of Volkswagen by Porsche, which owns a stake of around 30 pct in the Wolfsburg-based carmaker, has heightened after the EU struck down a law limiting participation in VW.
The EU Court of Justice ruled 'illegal' the so-called 'Volkswagen law' that among other things stated that a shareholder can only have a maximum of 20 pct voting rights, regardless of the number of shares it holds. Tyler.Sitte@thomson.com ts/rw COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
© 2007 AFX News
