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Federal prosecutors probe alleged market manipulation of Volkswagen shares

Porsche's offices have been raided by federal prosecutors probing the alleged market manipulation of Volkswagen shares.

"On Thursday morning, officers from Stuttgart prosecutors entered the company's offices with search warrants.

"The prosecutors suspect a breach of public disclosure requirements and market manipulation," a Porsche statement read.

Porsche had built up a stake of 51 per cent in VW in an attempt to launch a takeover of Europe's biggest carmaker. The two have subsequently agreed to a merger which will take place in 2011.

Porsche made huge profits on its VW shares, leading some commentators to describe the firm as a hedge fund with a carmaker tacked on the side.

The carmaker denied the accusations and said that it would co-operate fully with the prosecutors.

Reports by the BBC suggest that the investigation will focus on the roles of former chief executive Wendelin Wiedeking and finance chief Holger Haerter, both of whom resigned last month.

In order to shore up its finances, Porsche announced last week that the state of Qatar would take a major stake in the company.

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tannedbaldhead 20 August 2009

Re: Porsche offices raided

I remember watching a documentry about this and thinking if there were ever a group of people I wouldn't mind taking a major financial kicking it would be the hedge fund managers. One thing that did stick in my mind was an American stating that Porsche will not get away with costing American hedge fund managers billions of dollars so watch this space. I hope Germany hasn't sold out on extradition treaties to the extent we have or poor Wendelin Wiedeking and Holger Haerter are going to find themselves in Guantanamo. Would love to see the resultant posting on the internet of die hard Porsche fanatics chopping off American heads in revenge or Porsches packed with explosives driven into buildings at high speed (recomend the cayenne as best for the job but willing to discus pro & cons of other Porsche models). Can think of a few porker fanatics on this forum who may well be up for the job.