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

Login or Create new account to add a comment!

Recommended

WM Motor, a new China-based automaker, recently revealed its forthcoming lineup consisting of affordable electric vehicles. While there is a company is the U.S. that has the same name, they...
by - December 8, 2016
Even when Aston Martin has been mum about the upcoming AM-RB 001 hypercar, Marek Reichman at least has something new to say. In a recent interview with Australia’s Motoring, the...
by - December 8, 2016
The people at Mercedes-Benz are rejoicing. This is simply because for the first time since 1979, Mercedes-Benz has assembled 20,000 – and still counting – examples of the Mercedes-Benz G-Class....
by - December 8, 2016
When Donkervoort Automobielen BV unveiled its Donkervoort D8 GTO-RS limited edition in May 2016, customer interest has been so overwhelming that the Lelystad, Netherlands-based carmaker sold out this one-of-a-kind vehicle...
by - December 8, 2016
Mazda’s RX-7 and RX-8 rotary sports car are two of the most beloved sports cars from Japan. Aside from their terrific road balance and agility, these sports cars are powered...
by - December 8, 2016
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