Merckle family files $275million suit vs. Porsche SE for failed VW takeover

Article by Anita Panait, on October 14, 2012

Porsche SE, a holding company which formerly owns carmaker Porsche AG, is facing a new lawsuit in relation to its 2008 failed attempt to take over Volkswagen Group. HWO, a company connected to the family of deceased industrialist and billionaire Adolf Merckle, has launched a EUR213 million ($275 million) claim against Porsche SE at a court in Braunschweig, Germany, where the company is also facing damage claims of more than EUR4 billion from investor lawsuits over the same issue.

Plaintiffs have alleged that Porsche SE concealed its VW takeover plans in 2008, and discreetly piled up a stake in the automaker. When Porsche SE divulged its stake in October 2008, VW common shares soared to EUR1,005 within days, briefly making VW the most valuable company in the world as short-sellers such as Merckle scrambled to buy back borrowed shares on a bet that VW shares would drop.

A spokesman for Porsche SE confirmed that the company has received the lawsuit, remarking that it was unfounded and the group will defend itself. In January 2012, the Merckle family confirmed it would seek damages from Porsche SE via conciliation proceedings. A Porsche SE spokesman said the company declined to pay for the damages sought by HWO.

Merckle committed suicide in January 2009 while his business realm, which included stakes in HeidelbergCement and Phoenix Pharmahandel, collapsed following bets on VW, increasing debt and a drop in the value of HeidelbergCement stock. On September 19, 2012, the Braunschweig court dismissed two minor lawsuits against Porsche SE, discouraging claimants 9which include Elliott Associates and other U.S. investment funds seeking damages).

Topics: porsche, vw

If you liked the article, share on:

Comments

Recommended

New and improved 2018 Subaru Legacy comes packed with a number of upgraded features from the get go - from the exterior to the interior. And the company has finally...
by - June 23, 2017
In an interview involving Lamborghini CEO Stefano Domenicali and Automotive News, the topic about the Urus was thoroughly discussed. This super SUV is scheduled to make its debut later this...
by - June 23, 2017
Porsche definitely adores variety. You’ll see what we mean if you browse through the official company's website that shows a plethora of various 911 models. And now, the German marque...
by - June 23, 2017
2018 Ford Expedition is on its way to the market, and will be arriving at dealerships this fall. The all-new SUV will come with a new design, new EcoBoost engine,...
by - June 23, 2017
The 2018 Porsche 911 GT2 RS that made its debut not so long ago at the E3 video game expo in Los Angeles has already been sold out according to...
by - June 23, 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