Porsche was sued in Germany by 25 other hedge funds, besides the existing ones seeking 4 billion euro due to the automaker’s aborted VW takeover.
Among the plaintiffs are David Einhorn’s Greenlight Capital, Glenhill Capital LP and Viking Global Equities LP, seeking a combined 1.4 billion euro, according to Bernhard Schabel, a spokesman for the Stuttgart Regional Court. After this announcement Porsche’s shares dropped 3.7%. Viking, Glenhill and Greenlight also sued Porsche in New York state court due to the company’s use of options in the failed bid to take over VW in 2008.
“We see the risk as basically unchanged,” said Frank Biller, a Stuttgart-based analyst at LBBW who recommends buying Porsche stock. “We have anticipated a 5 billion-euro discount on the stock and don’t see any reason to change that amount now because of the suit.”
Porsche managed to avoid most of the litigation in the US courts, as Elliot International and 11 more hedge funds decided to withdraw their case from the New York Court of Appeals in March. By the end of April 12 more funds dropped their claims, which means that only 8 plaintiffs are left. Porsche has been accused of failing to inform the markets about its plans to takeover VW.