• Aug 20, 2009
The soap opera surrounding Volkswagen AG and Porsche has just taken a turn for the legal, as Bloomberg reports that the company's German offices have been raided by prosecutors who are investigating whether the automaker has violated security laws.

The German prosecutor's office seized documents amidst the allegations of stock price manipulation and insider trading, prompting Porsche to issue a statement denying the allegations while vowing complete cooperation (available after the jump). The probe stems from the sports car maker's attempt to gain control of parent Volkswagen, and the investigation is reportedly focusing on recently departed CEO Wendelin Wiedeking as well as ex-CFO Holger Haerter.

As you may recall, Porsche had tried to take over VW back in May, but that maneuver failed because of the company's swirling debt and a veto on the action by Lower Saxony. Porsche has since been swallowed up by the very company it was once seeking to take over, with an additional stake going to Qatar investors. You can read more by clicking on the link below, but be sure to hit the jump to read Porsche's official statement.



[Sources: Bloomberg, Porsche | Image: David Hecker/AFP/Getty]]

PRESS RELEASE:

Press-Information No. 27/09
20/08/2009

Suspected Breach of Publicity Duties

The public prosecutor's office investigates at Porsche

Stuttgart. Stuttgart. Investigative proceedings led by the public prosecutor's office have been carried out at Porsche Automobil Holding SE and Dr. Ing. h.c. F. Porsche AG, both in Stuttgart. This Thursday morning, officials from the public prosecutor's office in Stuttgart with judicial search warrants arrived at the administrative headquarters of the companies in Stuttgart-Zuffenhausen. The officials then searched the business premises of the companies, seizing numerous business documents in the process.

According to information provided by the public prosecutor's office in charge of investigations, there is a suspicion of breaching the publication duty as prescribed by the German Stock Corporation Act and furthermore of market manipulation.

Porsche is rejecting these allegations. The company is cooperating in the efforts of the public prosecutor's office and is offering investigating officials its full support in order to clarify the issue as quickly as possible.

# # #


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 22 Comments
      • 5 Years Ago
      Can't we all just get along???
      jack
      • 5 Years Ago
      i got mine... :)
      • 5 Years Ago
      IMAGINE THAT...a corrupt corporation...what a novel idea.
      • 5 Years Ago
      The kraut's always did know how to steal and hide the cash!
      • 5 Years Ago
      mein lieber gott!
      • 5 Years Ago
      ZOINKS SCOOBY!!!
        • 5 Years Ago
        Oh they did it alright, but as far as I know, at the time, it was all perfectly legal.
        • 5 Years Ago
        A lot of people have been wondering what's taken them so long: This case was a massive manipulation that foolish individuals had told the press had been planned from the start. It resulted in huge hedge funds being wiped out overnight, with at least two suicides resulting from subsequent bankruptcies.

        If they didn't hide their culpability I think these gents are going to prison.
      • 5 Years Ago
      that was a huge insider stock manipulation from Porsche last year, dailight robbery if u ask me. not that i would care that much but some of the former Porsche repres.(incl. WW and Haerter) are pretty much responsible for some suicides, committed by ruined traders. incl. A. Merckle and others: http://www.thedailybeast.com/cheat-sheet/item/german-billionaire-suicide/obit/
      • 5 Years Ago
      :popcorn:
      • 5 Years Ago
      i can't say i'm surprised.i love Porsche cars (the sport cars) and Porsche engineers , but i always hated the guys who control the cash in that company.
        • 5 Years Ago
        Are they the ones responsible for the $500 floor mats? :-)
      • 5 Years Ago
      So exactly what did they(Porsche) do? Are there any articles out there with specifics?
        • 5 Years Ago
        Well if we accept that they never had any hope of paying off the massive debt that they took out to buy VW....

        Then part of this could have been planned from the start. They owned 50% stock of a massive VW company on pure debt.

        Their solution was to offer up stock for their tiny company to VW investors and Qatar...

        Driving the company they are responsible for (morally as well, since that's peoples' livelihoods) into bankruptcy so they could make on stock in a separate company?


        So Porsche board members walk off with paid-off ownership in the massive VW corp by saying "to hell with Porsche AG, we want to retire."

        Some people would have gotten fired, lives ruined, just so others could get richer. That is corruption for sure. Whether it is actually illegal or not, I don't know much about EU laws against stock-fixing.
      • 5 Years Ago
      Oh snap.
    • Load More Comments