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Porsche SE Warns of Possible Fines Over Failed VW Takeover
Porsche Automobile Holding SE tells shareholders it may be ordered to repay "economic benefit" derived from its failed attempt to acquire Volkswagen AG four years ago.
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Porsche Automobile Holding SE tells shareholders it may be ordered to repay "economic benefit" derived from its failed attempt to acquire Volkswagen AG four years ago.
The holding company says the payback could come if German prosecutors prevail in claims that former Porsche CEO Wendelin Wiedeking and CFO Holger Haerter lied about the takeover attempt, misled investors and manipulated the market.
In 2008 Porsche SE quietly gained control of nearly 75% of VW shares, largely through derivatives. When news of the takeover attempt became public, VW's share price soared. Lawsuits by hedge funds, which lost heavily on the price surge, say the bonanza generated some €5 billion in cash flow for the holding company.
The takeover bid nearly bankrupted Porsche SE, which ended up selling its Porsche AG carmaking unit to VW to pay down debt.
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