By Friedrich Geiger
Several former executives of Porsche Automobil Holding SE
(PAH3.XE) have been charged in Germany with manipulating financial
markets in connection with the company's stealthy attempt at a
takeover of Volkswagen AG (VOW.XE) in 2008.
Announcing the charges Wednesday, prosecutors in the German city
of Stuttgart didn't identify the executives or say how many were
charged. A court in Stuttgart must now decide whether to open
criminal proceedings. Conviction could carry a prison sentence.
From early March to October of 2008, Porsche issued at least
five statements denying its intention to raise its stake in
Volkswagen to 75%, the prosecutors said.
Prosecutors say the statements were made after the executives
decided to try to raise Porsche's stake and were already preparing
for the move by purchasing buy options on ordinary and preference
shares of Volkswagen.
The denials induced investors to sell or make short sales, which
would benefit Porsche by lowering the share price ahead of the
takeover, the prosecutor said.
Porsche ultimately failed in the takeover, and Volkswagen bought
out Porsche earlier this year.
Write to Friedrich Geiger at friedrich.geiger@dowjones.com
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