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VW Waives Seat in SGL Carbon Supervisory Board - For now

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In a surprising move last week, Volkswagen acquired an 8% stake in SGL Carbon SE, with whom BMW has a joint venture for production of carbon fiber for the BMW i models. While BMW and Susanne Klatten (one main BMW shareholder) is watching this closely, Financial Times Germany now reports that VW is trying to play this move down as an investment and backs their claim by waiving a seat in SGL Carbon's Supervisory Board. "That's out of question," a VW Spokesperson told FTD and went on: "Neither are there any plans," when asked about VW's intentions to claim a seat in the SGL Supervisory Board.

This might look like a relief at first sight, yet Financial Times also reports that the Volkswagen Group has pretty good ties with SGL Carbon, even without being involved in the SGL Supervisory Board. Hubert Lienhard, CEO of Voith GmbH, is member of the SGL Carbon Supervisory Board. Voith not only holds a 5% stake of SGL Carbon but also formed a development partnership with Audi three weeks ago. Much like the BMW/SGL Carbon Joint Venture, this partnership is "meant to promote industrialization of fiber-reinforced materials, particularly through developing a highly automated process chain for high-volume automotive production."

Needless to say that we'll keep an eye on this situation. It will be interesting to see which efforts BMW and Susanne Klatten will make to clear this conflict of interest. Further developments also depend on Volkswagen's true intentions. VW CEO Martin Winterkorn called the SGL stakes "strategic" so pretty much everything is possible, including a bidding war on SGL Carbon.

Source: Financial Times Germany

[slyboogy]

I dont think VW is trying to de-rail or stir up dust with BMW , just getting into the driver seat on upcoming material trends. This happens in all marketplaces. BMW cannot expect SGL not to have other customers if SGL truly are the best in what they do ....

[SCOTT26]

BMW have in effect instigated clauses that will prevent VW progressing in taking over the company.

As discovered in the fairly recent "Sex Blackmail" case, and how she effectively brought them to justice in a clandestine motive... Miss Klatten is not one to F*** with.

[uhn2000]

Originally Posted by SCOTT26

BMW have in effect instigated clauses that will prevent VW progressing in taking over the company.

As discovered in the fairly recent "Sex Blackmail" case, and how she effectively brought them to justice in a clandestine motive... Miss Klatten is not one to F*** with.

+1 she is a monster.

http://en.wikipedia.org/wiki/Susanne_Klatten she is a Quandt don't think it gets more BMW then here...

[lasovan]

interesting!
I am confident Miss S.K. and BMW will do all the necessary to make things work well for them. And so for us...

[Matski]

Originally Posted by slyboogy

I dont think VW is trying to de-rail or stir up dust with BMW , just getting into the driver seat on upcoming material trends. This happens in all marketplaces. BMW cannot expect SGL not to have other customers if SGL truly are the best in what they do ....

That is different and not what BMW are are expecting SGL to do.

BMW agreed to build a factory along with SGL
Then VW, a Major competitor of BMW buys stake in SGL, therefore possibly taking part ownership of the fruits and profits of BMW's joint venture with SGL.

It's a savvy (yet under-hand) way for VW to get a finger in another pie.. though I guess it was SGL's decision to keep the information from BMW, and not VW's responsibility to declare it. I guess in a roundabout way it means VW can share in the sucess of BMW-i, and if marginal decisions came up where VW's share could swing it either way, it could possibly mean VW were able to operate SGL in a way not in the best interests of BMW (depends on how the other shares of SGL are divided up?). If SGL's market value rises once BMW-i goes into full production, the value of the shares go up, and BMW would have to pay more to get VW's shares back.

Not that I'm suggesting massive industrial espionage here, but since it clearly opens up such possibilities there is obviously a conflict of interests on SGLs behalf. Since VW group companies already have Carbon Fibre partners, I can't see any reason why VW would do this unless it was to be a massive pain in behind to BMW.

[JB135MDCT]

Bullshit VW game.

[3XTR3M3]

This is all sorts of fucked up. I think VW is enjoying every bit of it.

“BMW has always been a nice competitor for our 10 little brands ... We do not hurt each other so we can well share ownership at SGL,” Mr Piëch said.

Mockery.

[Touring]

Originally Posted by SCOTT26

Miss Klatten is not one to F*** with.

I guess that was quite an experience in her younger days.

[lasovan]

Automotive News Europe -- May 18
BMW's Klatten holds VW at bay with blocking stake in carbon fiber maker

Read more: http://www.autonews.com/apps/pbcs.dl...#ixzz1Mhm6BTYU