TOKYO -- Nissan Motor seeks to raise its stake in Renault to 25% or higher to block management interference in the alliance by the French government, Renault's top shareholder.

Under Japan's corporations law, Renault would lose its 43.4% share of voting rights in Nissan if the French automaker became at least a quarter-owned by its Japanese partner.

Nissan's current 15% stake in Renault does not confer voting rights. The French government is moving to increase its share of Renault's voting rights to around 28% next April under the so-called Florange law, which lets shareholders of at least two years double their say. Nissan has called on the government to lower its 19.7% stake in Renault to around 15%, but to no avail.

Until now, changes to the automakers' capital relationship, such as Nissan selling off Renault shares or issuing new stock of its own, had to be approved by Renault. Nissan directors apparently decided at a board meeting Monday to do away with this rule. The business partnership will remain unchanged.

Nissan could also try to weaken the French government's influence by watering down Renault's voting rights to less than 40% and gaining voting rights on its current stake.

The Japanese automaker received a capital injection from Renault in 1999 after falling on hard times. Three years later, it acquired a 15% stake in its partner.

Nissan and the French government have discussed Renault's governance since the Florange law was enacted but appear no closer to a consensus. Nissan believes that the alliance's growth depends on maintaining the current balance. It fears undue influence by the French government, which has its own priorities, including maintaining factory jobs, and wants the allies to merge.

(Nikkei)