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Prison Terms Demanded for Two Ex-Porsche Execs
Two former Porsche Automobil Holding SE executives each deserve more than two years in prison for manipulating the market price of Volkswagen AG in a failed attempt to acquire the company nearly eight years ago, according to prosecutors in Germany.
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Two former Porsche Automobil Holding SE executives each deserve more than two years in prison for manipulating the market price of Volkswagen AG in a failed attempt to acquire the company nearly eight years ago, according to prosecutors in Germany.
Prosecutors are asking that former CEO Widedeking be given two years and six months in prison, and that ex-Chief Financial Officer Holger be sentenced to two years and three months.
Each man also faces a punitive fine of €1 million ($1.1 million). In addition, prosecutors are seeking a €807 million ($1 billion) fine against Porsche SE. A verdict is due on March 4, according to Reuters.
Wiedeking and Holger led a Porsche SE effort in 2008 to quietly gain control of 75% of VW common shares, mainly through derivatives. They publicly denied the plan for eight months to keep VW’s stock price low.
But when Porsche finally announced it had amassed options for 74% of the larger company’s shares, VW’s stock price soared. The holding company’s debt jumped to more than €10 billion, and the takeover collapsed. Porsche SE later sold its Porsche AG carmaking business to VW but retains control of 51% of the VW voting rights.
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