Germany prosecutors widen investigation on former Porsche CEO, CFO

Article by Christian A., on February 25, 2011

As German prosecutors widened a probe prompted by Porsche’s botched attempt to take over Volkswagen, they stated that Porsche's former CEO Wendelin Wiedeking and ex-Chief Financial Officer Holger Haerter may have put the company at risk of collapse.

When it was reported last Thursday that the planned merger of Porsche and VW will be delayed by the investigation into the former CEO, the shares in Porsche plunged.

In 2009, Porsche tried to take over Volkswagen using complex financial derivatives, but its plan fell apart when its debt mounted, eventually forcing Porsche to accept a takeover by VW and leading it to terminate its management team.

Wiedeking and Haerter are being investigated for allegedly manipulating the market in VW shares and they are also the target of a U.S. lawsuit by hedge funds.

Stuttgart prosecutors said that they have dropped one aspect of the investigation, suspected manipulation of the market via trades. However, the existing allegations of market manipulation by failing to provide accurate information had hardened.

They also said that these two executives’ breach of trust may have put Porsche at risk of collapse. In a statement, the prosecutors' office said that they suspect that former board members took existential risks for the company by doing share price hedging deals in the attempt to take over Volkswagen. [via autonews - sub. required]

Topics: germany, porsche

If you liked the article, share on:

Pin It

Comments

Recommended

Owning a supercar in the past meant you’ll have to compromise. But there’s no need for that anymore - thanks to the Ford Performance engineers. The company ensures that you...
by - March 30, 2017
Tesla marked a major milestone as it surpassed Ford in market capitalization. Automaker Tesla, formerly known as Tesla Motors, closed out the trading on March 27, 2017, with a market...
by - March 30, 2017
The mid-cycle facelift for the Mercedes-Benz's S-Class have been disclosed to the public eye via these leaked shots. The images that recently surfaced and others like it were published online...
by - March 30, 2017
Reddit user Jdubbswrx spotted a rather deceptive move coming from the German automotive manufacturer Audi. He posted an image of the supposed exhaust of the new 2018 Audi SQ5 sporting...
by - March 29, 2017
McLaren car owners will be thanking the automotive company as it has decided to roll out new goodies for the 540C, 570S and 570GT sports car line-up. From this series...
by - March 29, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries