Norway Oil Fund Asks VW to Call Off Porsche Takeover
According to Bloomberg, “Norway’s $445 billion oil fund demanded that Volkswagen AG, Europe’s largest automaker, cancel its merger with Porsche SE, saying the deal favors the German sports-car manufacturer’s family owners.
The proposed transactions are unacceptable as they “leave the impression of being designed to suit the needs of the Porsche controlling families,” Norges Bank Investment Management, which manages the fund, wrote in a letter dated yesterday to Volkswagen supervisory board Chairman Ferdinand Piech and board members.
The fund, which invests Norway’s oil and gas revenue in stocks and bonds outside of the country, said it’s weighing unspecified options if VW doesn’t reconsider the deal, which was agreed upon after months of negotiations. The German state of Lower Saxony, VW’s second-largest shareholder with a 20 percent stake and veto rights, has signed off on the August agreement between the two German carmakers. “
read more: Bloomberg
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