BREAKING: Porsche offices raided on suspicion of stock manipulation
by Chris Paukert on Aug 20th 2009 at 12:56PM Breaking
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.
