The Volkswagen takeover of Porsche may look like a slam-dunk, but a group of investment funds is hoping to change that. Bloomberg reports that the investment group has filed a lawsuit in Stuttgart, Germany, seeking $2.6 billion in damages. The group's issue traces back several years earlier to when Porsche attempted to take over the infinitely larger VW.

The group said in a statement that Porsche "gained control over the price of VW common stock as it secretly built enormous derivative positions covering almost all of VW's freely traded shares, then triggered a massive short squeeze, and finally released billions of euros worth of shares into the short squeeze for its own profit."

The group's version of the VW takeover story is similar to the one we heard about in a 2010 lawsuit, but Porsche apparently denies the accusations. Porsche spokesperson Frank Gaube has reportedly said the automaker will need to receive the suit before it could be closely examined. Bloomberg says that the investment group has also filed an arbitration application against VW.


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
  • 24 Comments
      G2 Services, Ltd
      • 3 Years Ago
      Sounds like a legitimate stock strategy to me. I would hope that Porsche stays separate. The VW quality control sucks.
      Ian
      • 3 Years Ago
      Since the two have such familial ties, it's the equivelant of marrying your cousin. Porsche will resurface an in independent company once again.....you'll see.
      • 3 Years Ago
      [blocked]
      visconti24
      • 3 Years Ago
      Well, well, well... Porsche Holding has a legitimate interest in keeping its alliance with Volkswagenwerk A.G. because it uses their parts and assembly lines. The Panamera-Bentley-Audi-Phateon-Bugatti-Lamborghini, the Q-Cayenne-Touareg share a huge number of parts, engine blocks, etc etc. At the same time speculators, who salivated over the demolition and piecemeal sale of VW, got furious at Ferdinand Piech who, with the help of Qatar, which owns almost 20% of VW, to sell the wildly profitable company he and his family inherited (Porsche) to Volkswagen and then, in one fell swoop, to use the proceeds to buy Volkswagen itself. Quite a feat that earned him the enmity of the big speculators and banks who wanted the company for themselves. Piech merged Porsche with VW, a logical thing, a now is chairman of the supervisory committee.
      JaredN
      • 3 Years Ago
      Whining little speculators are pissed off that Porsche played their game better than they did.
      Ed
      • 3 Years Ago
      Guess the future Porche sedans will be on VW platforms, like Audi's are now ?
      mrbasebal1
      • 3 Years Ago
      VW was part of Porsche for many many years. During the 70's many parts were interchangeable, but the Porsche branded versions cost about twice as much. They should be one company anyway.
      David Thompson
      • 3 Years Ago
      "released billions of euros worth of shares into the short squeeze for its own profit" if Porsche had accomplished this, they wouldn't have nearly gone bankrupt which is what prompted their takeover by VW. Porsche would still be a separate entity if they had indeed managed to profit off their attempted takeover of VW. Instead, their plan fell apart and were taken over by VW themselves.
        The Doctor
        • 3 Years Ago
        @David Thompson
        You're assuming that the profit from the short squeeze was greater than the margin calls that Porsche was receiving as a result of its large cash-settled option postions on VOW.
          • 3 Years Ago
          @The Doctor
          [blocked]
      storytellerjmc
      • 3 Years Ago
      Sounds to me like "investors" and their "lawyers" trying to make millions - the easy way. Hope the case gets thrown out and the schemers find themselves looking up at the curb.
      Canis Lupis
      • 3 Years Ago
      How's about we just build cars...
      alfredschrader
      • 3 Years Ago
      What neither Porsche nor Volkwagen has is the Thunderdrive. A car equiped with my Thunderdive and Graviton Matrix technology will out accelerate a Porsche and get 90 mpg. Sure, they could steal this technology, but they don't know how it works. I didn't patent it, there are no public records of it. These are trade secrets like the Coke formula, and only I own it....Alfred-
        SamBlob
        • 3 Years Ago
        @alfredschrader
        Unless I'm sorely mistaken, your Thunderdrive and Graviton Matrix technology consists of that part of a male bovine's diet that cannot be digested and absorbed into its body.
        alfredschrader
        • 3 Years Ago
        @alfredschrader
        When Alexander Graham Bell invented the telephone, his AT & T shares became so valuable, for a time, it made him the wealthiest man on Earth. Graviton Matrix technology is more valuable than the telephone....Alfred-
      BC
      • 3 Years Ago
      The investors who bet wrong and lost are disgruntled, but I'm still not seeing evidence that Porsche did anything illegal or even improper under securities laws.
        The Doctor
        • 3 Years Ago
        @BC
        Takeover codes generally frown upon the offeror selling the target's equity back to the market during a formal offer (see section 4.2 of the UK takeover code for an example)
    • Load More Comments