BREAKING: Porsche offices raided on suspicion of stock manipulation

Chris Paukert — Thu, 20 Aug 2009 12:56:00 EST

Filed under: Government/Legal, Hirings/Firings/Layoffs, Porsche, Volkswagen

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.

Gallery: 2010 Porsche Panamera

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

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BREAKING: Porsche offices raided on suspicion of stock manipulation originally appeared on Autoblog on Thu, 20 Aug 2009 12:56:00 EST. Please see our terms for use of feeds.

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Officially Official: Porsche CEO and CFO quit, leave the building

Jonathon Ramsey — Thu, 23 Jul 2009 09:26:00 EST

Filed under: Europe, Hirings/Firings/Layoffs, Porsche

It was really just 35 words that announced the ends of two careers at Porsche: "In the last weeks Wiedeking and Härter have come to the conclusion, that the further strategic development of Porsche SE and Porsche AG is better off, if they are not on board as acting persons." And so, effective immediately, they aren't. The man who ~~would be~~ was king, Wendelin Wiedeking, and his majordomo CFO Holge Härter, have retired from Porsche with immediate effect.

The move was said to clear the way for Porsche to merge with VW and provide some relief for Porsche's balance sheet. After the same meeting that decided Wiedeking's fate, Porsche announced that it planned to increase its capital by €5 billion (about $7.1B U.S.). That's a big chunk of change, but it's only about a third of the company's debt load, and officials didn't say whether that figure would come from banks, Qatar, or some other investor. Wiedeking's position will be filled for now by supervisory board member and former head of production Michael Macht.

For severance, Wiedeking will get half of the package recently mentioned, a still-healthy sum of €50M ($71M U.S.). He has already pledged half of that money to a charity that will assist in job creation in Germany. Härter will receive €12.5M ($17.8M). Wiedeking, of course, hasn't said anything about where he might go from here, but at only 56 and with his story, we have a feeling we'll see him in the saddle again before long.

[Source: The New York Times]

Officially Official: Porsche CEO and CFO quit, leave the building originally appeared on Autoblog on Thu, 23 Jul 2009 09:26:00 EST. Please see our terms for use of feeds.

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