The former Porsche management may face criminal charges for market manipulation.
Former Chief Financial Officer Holger Haerter and former Chief Executive Wendelin Wiedeking have been investigated for market manipulation and the German prosecutors have already completed their case preparations on Sunday, August 5th.
The two executives and the company have rejected the accusations and their lawyers declared that the allegations were without merit. The German prosecutors will soon give the executives’ lawyers the case files and the opportunity to comment on the allegations, otherwise being ready to arrest their case. Wiedeking and Haerter could face the maximum penalty for these charges that is five years in prison.
The two former executives are accused of preparing plans for Porsche to take over Volkswagen, but continually denying this fact in public statements. After a previous unsuccessful attempt to buy Volkswagen, chalking up billions of euro in debt, in 2009 Porsche was trying to refinance but was forced to seek Volkswagen’s help.
In 2011 the two companies gave up the merger plan due to the US and German investor lawsuits, accusing Porsche of secretly buying VW shares, making short-seller lose billions. In July Porsche and VW closed a deal according to which Volkswagen will buy the other half of Porsche for 4.46 billion euro.