Volkswagen Facing Takeover Threat? Asks just-auto.com

    LONDON, May 30 http://www.just-auto.com - Could Volkswagen
be facing a takeover threat in the not too distant future?  That's the
question being posed in an article written by just-auto managing editor, Dave
Leggett.  Read the article at:
http://www.just-auto.com/features_detail.asp?art=503&app=1
    Dr Ferdinand Piech's reign at Volkswagen has been -- all things considered
-- rather a mixed bag.  The much-lauded policy of platform sharing across a
multitude of brands has failed to assuage concerns over Volkswagen's
structural problems and poor financial performance.  Now, speculation is
increasing that Volkswagen AG is considering a range of moves to protect its
independence, including spinning off Audi.  Moves by the European Commission
to address Germany's protective 'Volkswagen Law' and a perception that VW's
share price is low have increased rumours of interest.
    Leggett says: "Volkswagen is no ordinary car company. It's a great German
corporate institution and its biggest shareholder is the government of Lower
Saxony.  I once heard Wolfsburg memorably referred to as an 'arm of the German
social security system.'  Now it seems that the German 'Volkswagen Law', which
has protected VW from takeover, is under scrutiny from EU competition
officials.  And some people say the company is undervalued too.  Rumours have
started.  A defensive strategy is being discussed."
    He adds: "Would anyone be seriously interested? - slashing costs in
Germany could be a very tall order indeed.  At the very least, Dr Piech may
succeed in getting the share price up -- and therefore reducing the risk of a
hostile takeover -- before he finally bows out."

    Read the article at:
http://www.just-auto.com/features_detail.asp?art=503&app=1

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