Thursday, October 25, 2007

No decision yet on VW-Proton deal

The Malaysia Government has not decided on whether to allow Volkswagen AG (VW) to take control of national carmaker Proton Holdings Bhd.

Prime Minister Datuk Seri Abdullah Ahmad Badawi confirmed yesterday that the matter was discussed but said “we have not finalised yet.”

He said the Malaysian Government hoped it could finalise the deal as soon as possible but “they (VW) want to be very certain about everything as they are investing a lot of money.”

Still a little ways to go, it seems.Abdullah also called on the press to be patient and not to speculate as the matter had to be discussed and decided on.

He was speaking to reporters after chairing the Iskandar Regional Development Authority board and advisory council meeting at his office here yesterday.

Press reports quoting sources claimed that VW was just waiting for a nod from the Malaysian Government to take control of Proton.

The report also said that the German auto giant was looking at taking only a 20% stake in Proton and was also seeking management control of Proton Holdings.

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