Porsche execs cleared of market manipulation charges in VW takeover

The former Chief Executive Officer of Porsche Auto and the same company former Chief Financial Office were cleared in a German court of charges that they were involved in manipulating conditions prior to the takeover of the company by Volkswagen. The charges in question centered on the willful manipulation of market conditions that made the Volkswagen takeover easier. Prosecutors had outlined the case that the executives made misleading statements in the days and weeks ahead of the takeover. The true intent of the company was then masked, allowing for a larger stake of the company to be acquired and increasing the benefit received.

sacarfan-porsche-vw-merger-02

At stake was $869.5 million in penalties and the loss of freedom through prison sentences of 30 for CEO Wendelin Wiedking and 27 years for CFO HOlger Haerter. Five months into the case, the clearing means that the executives are free of the charges. Investors in the Porsche company reportedly lost as much as 5 billion euros and at one point, it was believed by most that Porsche would be the one to take over Volkswagen. High debt and external market conditions spoiled those plans, but the public was surprised when Volkswagen stepped up to take over Porsche instead.

Leave a Reply