Data provided by iNet BFA
Loading...
See More

Porsche board under investigation

Feb 12 2013 14:11 Reuters

The Porsche Carrera 4 GTS is the epitome of every gearhead’s wildest dreams. Picture: Brent Ellis

Related Articles

Porsche profits may decrease

Fraud charges stun former Porsche exec

Wedding bells for VW, Porsche

Porsche raises billions to clear debts

VW anxious to close Porsche deal

Porsche wins dismissal of VW lawsuit

 

Stuttgart - German prosecutors have extended a probe into market manipulation to all members of Porsche's supervisory board, including carmaker Volkswagen's chairperson, Ferdinand Piech.

Prosecutors are investigating the 12-member supervisory board of the German holding company, which owns about 51% of Volkswagen's (VW) shares, for suspected "aiding of market manipulation," a spokesperson said, declining to be more specific.

The move follows a decision by prosecutors last December to charge the former chief executive of Porsche, Wendelin Wiedeking, and his former finance chief, Holger Haerter, with market manipulation of VW shares during Porsche's botched 2008-09 takeover attempt of much larger VW.

Prosecutors in Stuttgart, where Porsche is based, have been investigating since 2009 whether the company misled investors in 2008 when it claimed it had no plan to acquire VW.

Porsche has repeatedly denied the allegations.

Some German and US investors say that throughout 2008 Porsche camouflaged its plans to buy VW and secretly piled up its holding.

In March 2008, Porsche dismissed as "speculation" talk that it intended to take over VW.

Seven months later, Porsche said it controlled 42.6% of VW's common shares and held options for another 31.5% of the stock it had not disclosed previously.

Porsche's statement caused VW shares to surge to €1 005 within days, briefly making VW the world's most valuable company as short-sellers raced to buy back stock they had borrowed to bet that VW shares would drop.

Porsche's attempts to buy VW backfired and pushed it to near bankruptcy. Instead of buying VW, the company ended up selling its sports car business, Porsche AG, to VW.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

porsche
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

Investing in shares is a marathon

When investment guru Warren Buffet was 11, he bought his first shares and today he reckons that he started too late.

 
 

Start saving...

Time the key for retirement saving
Dummy's guide to saving
Save money with affordable account
All about endowments

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...