Ex-Porsche CFO Haerter Admits Market Manipulation in VW Bid
Holger Haerter, Porsche's former finance chief, has admitted in a Stuttgart court to market manipulation during the company's failed 2008 Volkswagen takeover attempt.
Holger Haerter, the former chief financial officer of Porsche SE, admitted in a Stuttgart court that he was guilty of market manipulation during the company’s high-profile attempt to take control of Volkswagen in 2008, according to German prosecutors.
Prosecutor Heiko Wagenpfeil told the court that Haerter’s admission concerned his failure to disclose Porsche’s internal concerns about the cost of Volkswagen shares and the financial risks Porsche was carrying as it sought to acquire a controlling stake in VW. Haerter did not share these anxieties with the market when Porsche publicly stated it was considering a full takeover of Volkswagen.
Both Haerter and former Porsche CEO Wendelin Wiedeking faced accusations of misleading investors through public statements made in 2008. Porsche had repeatedly denied its intention to take over Volkswagen for much of the year, despite building up a controlling position through shares and options. In October 2008, Porsche announced it had secured control of 74.1 percent of VW, including options, and was seeking to reach 75 percent.
Short squeeze and investor lawsuits
The announcement triggered a dramatic short squeeze as investors who had bet against VW shares scrambled to cover their positions. Volkswagen shares briefly became the world’s most valuable as a result. The episode led to regulatory scrutiny and lawsuits from investors who claimed they were misled, seeking compensation reportedly totalling around €5 billion.
Prosecutors argued that Porsche’s statements were intended to help short sellers manage their positions, but the company failed to disclose its own conflicting interests. Wagenpfeil said Haerter’s own statement demonstrated that the market had been manipulated. Both executives were accused of systematically misleading the market about Porsche’s intentions toward Volkswagen.
