Porsche May Lose Bid to Send Volkswagen Case to EU, Judge Says

By Karin Matussek
Enlarge Image/Details

Nov. 6 (Bloomberg) -- A German judge indicated he may reject Porsche SE's request to have a lawsuit over government influence at Volkswagen AG referred to the European Union's top court.

The court in Hanover, Germany, is likely to decide on its own what the European Court of Justice's ruling in a related dispute means for veto rights given to the State of Lower Saxony in Volkswagen's charter, Presiding Judge Reinhard Saathoff said at a hearing today.

``Asking for guidance here would mean asking the EU court to interpret its own judgment,'' Saathoff said. ``We don't think the law allows for that, but will of course still have to think this question over thoroughly.''

Porsche, the maker of the 911 sports car, is seeking to overturn protections for the German state as it proceeds with a plan to take control of Volkswagen. Last week, Porsche said it held shares and options equal to a 74.1 percent stake in Europe's largest carmaker.

Porsche sued to overturn a rule at Wolfsburg-based Volkswagen that allows minority shareholders with a 20 percent stake to block major company decisions. Lower Saxony, Volkswagen's second-biggest shareholder and also its home state, holds 20.1 percent in common shares of the carmaker.

The European Court of Justice has already ordered Germany to modify the country's so-called Volkswagen law that granted Lower Saxony similar rights to those Porsche is trying to have stripped from Volkswagen's corporate charter in today's lawsuit.

Lower Saxony `Optimistic'

``It's important that the judges won't send the case to the European court,'' said Lower Saxony Finance Minister Hartmut Moellring. ``After today's hearing, I'm very optimistic about Lower Saxony's chances.''

Frank Gaube, a spokesman at Stuttgart, Germany-based Porsche, said the company is seeking ``legal clarity'' on its plans for Volkswagen.

``That's not a question of being optimistic or pessimistic on how the court will rule,'' Gaube said after the hearing.

The court in Hanover, Lower Saxony's capital, will issue its ruling on Nov. 27, added.

Today's cases are 21 O 52/08 and 21 O 61/08 at he Hanover Regional Court.

To contact the reporter on this story: Karin Matussek in Hanover via the Berlin newsroom at +49- 30- kmatussek@bloomberg.net