Regulators raid the offices of Porsche
THE OFFICES of German luxury carmaker Porsche were raided by federal prosecutors yesterday, as part of a probe into suspected market manipulation of Volkswagen shares.
The investigation centres on Porsche’s former chief executive Wendelin Wiedeking and its ex-finance chief Holger Haerter, both of whom resigned last month.
Porsche said: “On Thursday morning, officers from Stuttgart prosecutors entered the company’s offices with search warrants. The prosecutors suspect a breach of public disclosure requirements and market manipulation.”
Germany’s financial market regulator Bafin said it filed charges with Stuttgart prosecutors, adding a legal twist to what has been a complex corporate takeover drama played out between the two carmakers.
Porsche, VW’s majority shareholder, tried in vain to take over Europe’s biggest carmaker only to abandon the campaign as its debt mounted, forcing it into a reverse takeover by its much larger peer.
This development cost the jobs of Wiedeking and Haerter, whose wizardry with derivatives helped Porsche mount the raid on Volkswagen.
As part of the takeover, Porsche moved to seize control over more than 70 per cent of Volkswagen’s stock, causing Volkswagen ordinary shares to shoot up to €1,000 (£863) apiece last year, briefly making it the world’s most valuable company.
“Porsche rejects the accusations that have been raised,” the luxury car company said.