EU’s top court strikes down VW takeover law


Reuters

LUXEMBOURG/FRANKFURT — The European Union’s highest court Tuesday struck down a German law that shielded Volkswagen from takeover, paving the way for Porsche to take majority control of Europe’s biggest carmaker. The ruling is a major boost for the European Commission in its crackdown on so called golden shares, or strategic stakes that give governments special influence over listed companies.

“Today’s ruling of the European Court of Justice is good news for the internal market and the free movement of capital,” Commission spokesman Oliver Drewes told a briefing in Brussels. The law’s demise could also end decades of cosy ties between management and labor at VW in a system called co-determination that gives workers a major say in how the company is run.