FRANKFURT--German prosecutors in Stuttgart are investigating
allegations of market manipulation at the supervisory board of
Porsche SE (PAH3.XE), a prosecution spokesman said Tuesday.
In December, prosecutors filed charges against Porsche SE
managers Wendelin Wiedeking and Holger Haerter for manipulating
markets in the company's attempt to take over Volkswagen AG
(VOW.XE).
The spokesman was responding to an online report by the weekly
Der Spiegel magazine which said that the supervisory board is
alleged to have violated trading laws during the failed takeover
attempt.
A Porsche SE spokesman said the company is aware that state
prosecutors have initiated an investigation.
In 2005, Porsche bought Volkswagen shares and attempted to take
over the company via complex share options three years later. The
move sparked high volatility in Volkswagen shares and losses for
investors. The attempt failed, and Porsche was later sold to
Volkswagen.
Last December, prosecutors said that from early March 2008 to
October 2008, Porsche issued at least five statements denying its
intention to raise its stake in Volkswagen to 75%.
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.
Write to the Frankfurt Bureau at
djnews.frankfurt@dowjones.com