Norway Fund to Oppose Porsche Takeover

A Norwegian wealth fund has announced today that it is against Volkswagen's takeover of Porsche, as the move may prove to be too costly for the minority shareholders. The move is being considered by the fund, a minority VW shareholder (0.35 percent, worth $450 million), as being unacceptable.

"The Volkswagen case is a classic example where minority shareholders' rights are very challenged," Anna Kvam, the fund's head of corporate governance was quoted as saying by Autonews. "We are determined to pursue this case."

The fund is accusing the Volkswagen controlling families of acting in their own interests, without transparency. The fund has already contacted other minority share holders and, according to Kvam, many feel the same way.

"We have a substantial investment in Volkswagen and I think we are known to be a very long-term shareholder. We are not doing this to boost the price and gain some benefits over the next months. We are seriously interested in seeing this company develop over the long-run."

The fund declined to comment whether it will pull out Volkswagen in case its complaint isn't heard.

"There is always an opportunity to disinvest in the company, if we would like to do that. Whether that is something that we will do in this case -- that is something I will not comment on."

The fund did not make any specific claims, nor did it elaborate on the measures it plans to take. It only said it is looking into improving its and other minority shareholders rights.