Porsche SE to discuss dividend

The company that controls Volkswagen will hold a board meeting on Monday to discuss its strategy for the German carmaker’s annual shareholder meeting and decide whether to block its plans to pay a dividend, two people familiar with the matter said.

Members of Porsche SE, a holding company for the Porsche and Piech families which controls 52% of Volkswagen’s voting shares, have spoken out against VW’s proposal to pay a dividend for 2015 when it is still grappling with the fallout of its emissions test cheating scandal.

One of the four family members on VW’s 20-strong supervisory board warned at a board meeting in April that the Porsche-Piech clan would use its voting power at the June 22 shareholder meeting to block a dividend payment, two people familiar with the matter have told Reuters.

However, that could put them on collision course with other VW shareholders, which are already facing a much lower dividend for 2015 than in previous years.

In April, VW proposed a 2015 dividend of €0.11 per ordinary share and €0.17 per preferred share, down from €4.80 and €4.86 respectively for 2014.

The company is battling to cut costs and conserve cash after admitting in September to cheating US diesel emissions tests.

It has already set aside $18bn to cover the cost of vehicle refits and a settlement with US authorities, and analysts think there could be more fines and legal costs.

Porsche SE declined to comment.


This week's food news with Joe McNammee.The Menu: Quick nibbles; International Women's Day; The People's Choice

With spring around the corner, it’s the perfect time to treat your home to a detox. Gabrielle Fagan taps up the Topology design gurus for tips.How to make your home calmer and less cluttered in 7 simple steps

From Bermuda shorts to romantic white dresses, Prudence Wade looks at the styles you’ll want to wear this season.7 of the biggest spring fashion trends fresh off the catwalk

If your car has been affected by the weather, read on for tips on what to do next.Dude my car is flooded-what should I do?

More From The Irish Examiner