German prosecutors have raided Porsche's headquarters, as part of an investigation into possible stock market manipulation of Volkswagen shares.
The move comes after financial regulator Bafin filed charges with Stuttgart authorities. While the specifics are murky, the probe appears to focus on Porsche's failed attempt to seize control of Volkswagen which caused VW shares to soar past 1,000 Euros each. The investigation also centers on whether or not Porsche properly informed authorities and investors about the planned VW takeover.
Pending the results of the prosecutor's investigation, charges could eventually be filed against Porsche's former CEO Wendelin Wiedeking, ex-CFO Holger Haerter, and several other high ranking company officials.
Porsche released a statement saying that "...there is a suspicion of breaching the publication duty as prescribed by the German Stock Corporation Act and furthermore of market manipulation." While a number of documents were seized, the company denied any wrong doing. They also stated that, "The company is cooperating in the efforts of the public prosecutor's office and is offering investigating officials its full support in order to clarify the issue as quickly as possible."
Stay tuned for more details.
Sharpie
August 21, 2009 3:20 PM
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