COMPANIES Somewhat overshadowed by the pyrotechnics of Volkswagen’s share price was the simple fact that Porsche, the German sports carmaker, has all but reached its goal at its bigger rival.
Porsche now holds 74.1 per cent of VW directly and indirectly and is within touching distance of the three-quarters level needed to impose a domination agreement on Europe’s largest carmaker to capture VW’s cash flows. If the European Commission and European Court of Justice strike down a new version of the so-called VW law it will leave Porsche in total control.
