Welcome Guest   |  Login   |   Signup
JG Logo
Thu, May 24, 2012
Archive Search

Investors Sue Porsche for $2.6b Over VW Deal
Aaron Kirchfeld | January 01, 2012

German carmaker Porsche is being sued for about 2 billion euros ($2.6 billion) by a group of investment funds. The investor group’s complaint alleges that Porsche gained control of the price of VW stock as it built derivative positions covering most of VW’s freely traded shares, then triggered a short squeeze, and released billions of euros worth of shares. (EPA Photo) German carmaker Porsche is being sued for about 2 billion euros ($2.6 billion) by a group of investment funds. The investor group’s complaint alleges that Porsche gained control of the price of VW stock as it built derivative positions covering most of VW’s freely traded shares, then triggered a short squeeze, and released billions of euros worth of shares. (EPA Photo)
Share This Page
0
2
0
0
Share with google+ :


Post a comment
Please login to post comment

Comments

Be the first to write your opinion!

Porsche Automobil has been sued by a group of investment funds seeking about 2 billion euros ($2.6 billion) in damages allegedly suffered as a result of the carmaker’s failed takeover attempt of Volkswagen AG in 2008.

The group, whose members weren’t identified, filed the lawsuit in the district court of Stuttgart, Germany, according to a statement.

The plaintiffs also filed an arbitration application regarding Volkswagen, two members of the VW supervisory board and one member of the management board of VW.

“The accusations are not justified and we reject them,” Frank Gaube, a spokesman for Stuttgart-based Porsche, said on Saturday. The company needs to receive the suit before it can closely examine it, he said.

Porsche and VW agreed to merge in 2009 after Porsche racked up more than 10 billion euros of debt in its bid for VW.

The merger has been held up by lawsuits linked to Porsche’s takeover bid for VW, with the Wolfsburg, Germany-based carmaker waiting to avoid any potential financial liabilities from the suits.

The investor group’s complaint alleges that “Porsche gained control over the price of VW common stock as it secretly built enormous derivative positions covering almost all of VW’s freely traded shares, then triggered a massive short squeeze, and finally released billions of euros worth of shares into the short squeeze for its own profit.”

VW spokesman Michael Brendel didn’t immediately respond to requests for comment.

Bloomberg