The German government approves an amended law that retains some rights held by the state of Lower Saxony to control decision-making at the nationâ€™s largest car maker,AG.
Porsche AG, which controls 31% of VW and has signaled plans to increase its stake beyond 50%, opposes the pending law, which gives Lower Saxony veto rights over decisions made at shareholder meetings.
Employee representatives on the auto makerâ€™s supervisory board also would have a say over any decisions to move production.
German Chancellor Angela Merkelâ€™s cabinet is expected to decide on whether to approve the law May 27.
Analysts say the new law, which revises a previous statute struck down last year that capped VW shareholder voting rates at 20%, may sway Porsche against increasing its stake beyond 50%. Speculation was Porsche would buy as much as 75% of VW.