Porsche AG's chief executive said Wednesday
that his company has made no decision on whether to raise its stake
in rival German automaker Volkswagen AG, and suggested that it was
in no hurry to make a move.
Speculation that Porsche would move to take a majority in
Volkswagen has been high since the European Court of Justice ruled
last month that Germany's so-called ``VW law'' had illegally
shielded Volkswagen from any takeovers.
Porsche is Volkswagen's largest shareholder, and has built a 31
per cent stake.
At an employee council meeting in Stuttgart, CEO Wendelin
Wiedeking said there was no decision so far to increase that stake.
``We are not under time pressure,'' he said.
Volkswagen's second-biggest shareholder is the state of Lower
Saxony, where Volkswagen's Wolfsburg headquarters is located, which
holds just over 20 per cent.
With more than 51 per cent combined, the two could block any
But Porsche has been profiting from its stake in VW, and most
observers expect it is only a matter of time before it moves to
increase its shares further.