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Breaking: German Prosecutors Raid Porsche Offices Over Possible “Market Manipulation”

Former CEO allegedly being investigated for insider trading

 |  Aug 20 2009, 10:45 AM

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Earlier today German federal prosecutors raided Porsche’s offices in Stuttgart in search of documents that would reveal illegal business practices. The raid stems from Porsche’s failed takeover attempt of Volkswagen, with the prosecutors office alleging, “a breach of public disclosure requirements and market manipulation.”

In a statement released by Porsche the German sports car maker said that documents were sized but that it denies the accusations and has agreed to cooperate fully with the prosecutors office.

German newspaper Die Welt has reported that both former CEO Wendelin Wiedeking (pictured above) and former CFO Holger Haerter are being investigated for insider trading.

Both men were recently ousted from Porsche by the company’s board after the failed attempt to take over Volkswagen was settled with a merger of sorts. In the process, however, Porsche accumulated a 51% share of Volkswagen stock.

[Source: BBC and WAtoday]