The German state of Lower Saxony has no intention of selling its 20.35% stake in Volkswagen despite the current high share price.
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According to dpa-AFX, state president Christian Wulff, told the news magazine Focus that, as long as he is president, the shareholding would not be sold.
Wulff said that the value of Lower Saxony’s shareholding in Volkswagen has increased by more than EUR7bn since spring 2003 when he became president.
Lower Saxony also owns a 25.17% stake in the steel company Salzgitter. Wulff said he received an offer nearly every week for its shares whose value has risen by EUR2.2bn during the same period.
There had been speculation that Lower Saxony would sell its shares if its management influence is diminished. At the moment all shareholders are limited to a maximum 20% of the voting rights in Volkswagen by the so-called VW law.
Porsche currently holds over 30% of Volkswagen shares but its control is limited to 20%. The European Commission took action against Germany in 2005, claiming that the Volkswagen law is an infringement of the free movement of capital. The European Court of Justice will deliver judgement on the future of the law on 23 October.
