Porsche under investigation
Stuttgart headquarters raided by authorities and former CEO wanted for questioningJust when the Porsche-Volkswagen ownership saga looked set for a conclusion, German authorities have launched an investigation into the sportscar brand's dealings. Former chief executive officer Wendelin Wiedeking is at the centre of the probe over suspected market manipulation.
Market regulators in Germany are examining whether Wiedeking, along with former chief financial officer Holger Haerter and other unnamed Porsche officials, broke the law during its attempts to take control of Volkwagen Group earlier this year.
Wiedeking and Haerter masterminded Porsche's use of derivatives to try and mount the daring takeover bid of Volkswagen AG. The prosecutors have also revealed they are looking into the possibility of insider trading as part of the investigation.
Not surprisingly Porsche quickly issued a statement denying any wrong doing by the organisation.
"Investigative proceedings led by the public prosecutor's office have been carried out at Porsche Automobil Holding SE and Dr. Ing. h.c. F. Porsche AG, both in Stuttgart," the statement read. "This Thursday morning, officials from the public prosecutor's office in Stuttgart with judicial search warrants arrived at the administrative headquarters of the companies in Stuttgart-Zuffenhausen. The officials then searched the business premises of the companies, seizing numerous business documents in the process.
"According to information provided by the public prosecutor's office in charge of investigations, there is a suspicion of breaching the publication duty as prescribed by the German Stock Corporation Act and furthermore of market manipulation.
"Porsche is rejecting these allegations. 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."
Wiedeking stepped down from his position in late July when Volkswagen took controlling interest in Porsche AG. At the time he was the highest paid executive in Germany and was given a €50million golden handshake.
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