Wiedeking, Haerter Must Stand Trial for VW Takeover Bid

An appeals court in Stuttgart has ruled that Wendelin Wiedeking, the former CEO of Porsche Automobil Holding SE, must stand trial on charges the company manipulated the share price of Volkswagen stock in a failed takeover bid.

The German court panel said Holger Haerter, Porsche SE's former chief financial officer, also must face trial.

A lower court ruled in April that the case, which had been filed in December 2012, lacked sufficient evidence to continue. But the appeals judges cite "numerous indications" of a hidden decision by Porsche to increase its stake in VW while publicly claiming it had no such intent. Porsche SE insists the complaint is without merit.

Prosecutors say the holding company launched a strategy in early 2008 to seize 75% control of VW but repeatedly denied the plan for eight months to keep VW's stock price low. When Porsche SE then announced it had acquired options for 74% of the larger company, VW's share price surged.

The holding company's plan faltered under the huge debt incurred in the takeover bid. It later sold its Porsche AG carmaking unit to VW.