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

In September 27, 2016, Porsche initially filed for a patent that is the “Unique Active Rear Diffuser”. And earlier this week, on April 27, 2017, the United States Patent and...
by - April 29, 2017
The Insurance Institute for Highway Safety (IIHS) has given its Top Safety Pick+ award to the redesigned version of the 2017 Kia Cadenza. This was a result of excellent a...
by - April 29, 2017
It’s pretty neat if you possess something of an extraordinary breed like, say, the Pagani Huayra. There are after all just a total of 100 units ever been built by...
by - April 28, 2017
If you’ve ever visited an arcade, chances are you have already seen a Logitech G920 wheel. If that doesn’t ring a bell, it’s the steering wheel that you use when...
by - April 28, 2017
Toyota Motor Corporation disclosed that it will be bringing two of its Mirai fuel cell vehicles to China by October of this year. Tests will then be conducted on these...
by - April 28, 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