Report: U.S. hedge funds file lawsuit against Porsche, traders unconcerned

Zach Bowman — Wed, 16 Mar 2011 17:40:00 EST

Filed under: Government/Legal, Porsche, Earnings/Financials

A group of New York hedge funds have filed suit against Porsche for cornering the market on Volkswagen stock, according to Reuters. The lawsuit claims that the German automaker caused $1 billion in losses by discreetly buying up every freely traded share of Volkswagen stock in an attempt to take over the company in 2008. When Porsche revealed what it had done, Volkswagen stock prices leapt. The hedge funds, meanwhile, had bet big that Volkswagen shares would actually see a dip, and the reversal caused major losses.

The plaintiffs include Greenlight Capital LP, Tiger Global LP, Glenhill Capital LP and Glenview Capital Partners LP among others.

Porsche has rejected the allegations as inadmissible and unsubstantiated. Some of the hedge funds included in this lawsuit were part of a similar filing that failed against the automaker last year. That lawsuit caused some concern about whether or not Porsche's merger with Volkswagen would sail on smooth seas, but thus far, at least, investors seem less concerned about the latest legal woes.

[Source: Reuters]

Report: U.S. hedge funds file lawsuit against Porsche, traders unconcerned originally appeared on Autoblog on Wed, 16 Mar 2011 17:40:00 EST. Please see our terms for use of feeds.

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Porsche head predicts a hedge fund will swallow GM or Ford

Jonathon Ramsey — Mon, 01 Dec 2008 13:01:00 EST

Filed under: Etc., Europe, Chrysler, Ford, GM, Porsche

Little guy Porsche is taking huge swings, and not just at the giant that is Volkswagen. Porsche head Wendelin Wiedeking had fierce Teutonic words for General Motors and Ford, and banks. His Rindfleisch - beef, that is - with U.S. automakers is that, through unsound practices, they have thrown absolutely everything into turmoil. In the words of the Guardian, in fact, they have driven "the industry to the brink of ruin."

Those are big and perhaps hyperbolic words. But he then singles out GM for "openly threatening" the U.S. Government with bankruptcy, and predicts a hedge fund will take control of "one of the U.S. car manufacturers." Since Chrysler is already controlled by a hedge fund, that only leaves GM and Ford as the possible subjects of that comment. We can't imagine a hedge fund trying to swallow GM or Ford, especially after Cerberus has taken such a beating with Chrysler that seemingly all they can say is "Must... find... the exit."

Wiedeking is on more Earthly ground when he talks about the little guys, suppliers, who are quietly going under -- even though many of them ran their business correctly -- due to the banks' refusal to lend money while the clash of automotive titans continues. In a quote that people in many different industries can applaud, he says "We need banks to give credit, not just talk about credit ratings but start real actual lending to companies." Amen. Thanks for the tip, Sonny!

[Source: The Guardian]

Porsche head predicts a hedge fund will swallow GM or Ford originally appeared on Autoblog on Mon, 01 Dec 2008 13:01:00 EST. Please see our terms for use of feeds.

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