THE OFFICES of German luxury carmaker Porsche were raided by federal prosecutors yesterday, as part of a probe into suspected market manipulation of Volkswagen shares.<br /><br />The investigation centres on Porsche’s former chief executive Wendelin Wiedeking and its ex-finance chief Holger Haerter, both of whom resigned last month.<br /><br />Porsche said: “On Thursday morning, officers from Stuttgart prosecutors entered the company’s offices with search warrants. The prosecutors suspect a breach of public disclosure requirements and market manipulation.”<br /><br />Germany’s financial market regulator Bafin said it filed charges with Stuttgart prosecutors, adding a legal twist to what has been a complex corporate takeover drama played out between the two carmakers.<br /><br />Porsche, VW’s majority shareholder, tried in vain to take over Europe’s biggest carmaker only to abandon the campaign as its debt mounted, forcing it into a reverse takeover by its much larger peer.<br /><br />This development cost the jobs of Wiedeking and Haerter, whose wizardry with derivatives helped Porsche mount the raid on Volkswagen.<br /><br />As part of the takeover, Porsche moved to seize control over more than 70 per cent of Volkswagen’s stock, causing Volkswagen ordinary shares to shoot up to €1,000 (£863) apiece last year, briefly making it the world’s most valuable company.<br /><br />“Porsche rejects the accusations that have been raised,” the luxury car company said.
Friday 21 August 2009 1:00am
Regulators raid the offices of Porsche
