The Straits Times
Published on Dec 19, 2012

Ex-Porsche chief charged with market manipulation


BERLIN (AFP) - A German prosecutor said on Wednesday that the former head of German luxury sports car maker Porsche had been charged with market manipulation over a failed takeover bid of Volkswagen.

Wendelin Wiedeking, as well as Porsche's former finance chief Holger Haerter, are accused of having publicly given false information on Porsche's plans in 2008, the public prosecutor in the southern city of Stuttgart said.

Between March and October 2008 the two accused allegedly denied at least five times that Porsche planned to raise its stake in VW to 75 per cent although it had already begun preparations to do so, the prosecutor said.

Several months later Porsche made the surprise announcement that it held 75 per cent of Volkswagen, triggering shares in VW to soar and leading to heavy losses for investors who had banked on a fall.