Porsche Executives Sued Over Attempted Volkswagen Takeover

Porsche Executives Sued Over Attempted Volkswagen Takeover

Top-level Porsche executives are being sued for misleading markets in its attempted Volkswagen takeover in 2008.

Chairman Wolfgang Porsche and board member Ferdinand Piech could owe seven hedge funds over $2.4 billion if the lawsuit is successful. The German automaker denied rumors of plans to take over Volkswagen initially, and investors betted against existing Volkswagen shares, expecting a drop in the absence of a Porsche bid.

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Once it was discovered that Porsche had positions on 74 percent of Volkswagen’s shares, investors rushed to purchase Volkswagen stock. But Porsche never raised the funds to purchase the 75-percent stake it needed to take over Volkswagen.

In 2012, Volkswagen acquires the remaining 50.1 percent of Porsche shares after buying a 49.9-percent take in the company in 2009.

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[Source: AutoExpress]

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