GLG News by Healthcare Experts: Legal, Economic, and Regulatory Affairs (EU)

Peter DehnenPresidentGerman American Business Forum

Optimistic at Mid-term

March 30, 2009

Analysis of:Original title: Business confidence hits 18-year low in Germany | www.ft.com

Business confidence in Germany is at an all-time low. The business climate index, as surveyed by the Munich-based Ifo Institute, has reached the lowest result measured since the survey began in 1991. Even worse is that, according to Ifo’s president Hans W. Sinn, the bottom of the downturn has not yet been reached. That’s the bad part of the news. Here comes the good news: Although the part of the survey which measures current conditions continues to decline, the part of the survey measuring optimism for the next six months has increased steadily since the beginning of the year.

Peter DehnenPresidentGerman American Business Forum

German banking consolidation through partial nationalization?

January 21, 2009

Analysis of:“Germany uses crisis to push banking consolidation” | www.ft.com

Germany has been the most active in promoting consolidation in both the commercial banking industry as well as in the state banking sector. In concrete examples, the German government has acquired a 25 % direct stake in Commerzbank to ensure that its merger with Dresdner Bank will go ahead as planned and has recently given a helping hand to Deutsche Bank in its bid to acquire a large stake in Postbank to beef up Deutsche Bank's domestic retail franchise. The consolidation of the already state-owned sector of Landesbanken and Sparkassen is the bigger challenge. The government will have to persuade the different Landesbanken of the German Federal States and also the mutual savings banks (Sparkassen) to accept consolidation.

Peter DehnenPresidentGerman American Business Forum

Germany’s VW Law brought to ECJ again

September 11, 2008

Analysis of:EU's McCreevy wants Germany facing court over VW law | www.cnbc.com

EU Internal Market Commissioner Charlie McCreevy announced that he wants to take Germany to the European Court of Justice (ECJ) since in his view, Germany has failed to amend the so-called “VW Law” properly and in line with European legislation. The ECJ held last year that the VW law was in breach of European rules on the free flow of capital across borders within the EU. The German car maker Porsche, which is Volkswagen’s major shareholder, currently owning 30 %, has already won permission from the European Commission (EC) to acquire control of VW and is about to do this step by step within the next few months. The German state of Lower Saxony, VW's second-largest shareholder with just slightly over 20 % of the ordinary shares, wants to keep its stake and the blocking minority provided by the VW Law.

Peter DehnenPresidentGerman American Business Forum

Siemens Damage Claim is unprecedented

July 31, 2008

Analysis of:Article: Siemens to claim money from ex-chiefs | www.ft.com

Siemens announced that the Supervisory Board has approved recommendations of its law firm to claim damages from executive board members in charge between 2003 and 2006. It will be the first time in German history that a chief executive of a company listed on the German blue-chip stock index DAX has been sued for damages by his former employer.

Peter DehnenPresidentGerman American Business Forum

European Commission postpones decision on Porsche-VW issue

July 8, 2008

Analysis of:EU verschiebt Entscheidung zu Porsche/VW | www.ftd.de

Porsche recently purchased shares outright corresponding to a 4.92 % share of VW’s common stock. The European Commission announced the postponement, of its decision in regard to the request submitted by Porsche for approval of its planned shareholding. Meanwhile, in order to ensure that its share of VW remains at the important mark of 20%, Lower Saxony recently purchased 500,000 additional VW shares. In a 2007 decision, the ECJ struck down various provisions of the so-called “VW Law” which contained a minority blocking provision as well as a voting rights cap to protect the interests of the German State of Lower Saxony. In reaction to the ECJ’s decision, the German Ministry of Justice drafted a “new” VW Law which retained the 20 % blocking minority provision of the old law based on Lower Saxony’s interpretation of the ECJ ruling.

Peter DehnenPresidentGerman American Business Forum

Showdown at VW

March 27, 2008

Analysis of:Fighting returns to VW over Porsche's stake | www.ft.com

Volkswagen’s two major shareholders – Porsche and the State of Lower Saxony - are on course for a showdown at the company’s upcoming annual general meeting (AGM) to be held on 24 April 2008. Porsche’s fight with Lower Saxony stems from the so-called “VW law,” parts of which were struck down last year by the European Court of Justice (ECJ).

Peter DehnenPresidentGerman American Business Forum

Germany seeks to protect its companies against foreign government funds

February 28, 2008

Analysis of:Financial Times Deutschland: EU plant Kodex für Staatsfonds | www.ftd.de

More than USD 42 billion was invested by foreign government investors in Germany in 2007 and more than 2.2 million German employees work for companies owned by non-resident government and private funds. In regard to foreign investment funds, a German draft bill would allow the German government to prohibit the acquisition of a stake greater than 25% in a company located in Germany by a non-resident investor. Although the draft bill aims primarily at government-owned funds, the law would equally apply to any investor, whether privately or publicly owned, in order to allow blockage of controlling foreign interests in German companies. The President of the European Commission, Jose Manuel Barroso, has argued for a “European approach”, which need not automatically mean a European law, but which should avoid national solo attempts at restrictions.

Peter DehnenPresidentGerman American Business Forum

Porsche Seeks Full Control of Volkswagen

December 14, 2007

Analysis of:Porsche to Wait until Holidays End to Take Over Volkswagen | www.nytimes.com

The Porsche AG founded a new corporate entity in the legal form of a Societas Europaea (SE), the Porsche Automobil Holding SE, which got registered in November. According to Porsche CEO Wendelin Wiedeking the registration of the Porsche Automobil Holding SE was a prerequisite for Porsche to enhance the stake in Volkswagen. Another hurdle taken…

Peter DehnenPresidentGerman American Business Forum

Comeback: Leo Kirch Back on Track

December 11, 2007

Analysis of:Kirch back on the ball with rights deal | search.ft.com

Leo Kirch, whose media group collapsed in 2002 in Germany’s then largest bankruptcy, has made a surprising comeback. The media entrepreneur bought the rights to German league soccer on October 9, thereby guaranteeing higher revenues for the league’s various clubs. The deal with Kirch was reportedly controversial among soccer clubs because his empire’s collapse led to significant financial difficulties for some of them.

Peter DehnenPresidentGerman American Business Forum

Transrapid Floats Toward Munich

December 7, 2007

Analysis of:Germany moves toward building high-speed maglev line from Munich to airport | www.iht.com

The Transrapid railway system is an ambitious business project with high potential. Unfortunately the German developers were not able to see their modern train run in Germany or Europe as the concept was exported to China and the first track was build to link Shanghai with its airport. Now the high tech train system is coming to Germany.

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