Porsche's Lawsuit Over Failed VW Takeover Dismissed
Porsche announced that it wanted to acquire 75 percent of Volkswagen AG in part of a takeover strategy back in October 2008. Because of this, many hedge funds invested in the strategy, but the takeover wasn't successful. As a result, 23 different hedge funds went after Porsche, claiming the automaker misled them. Recently, a court in Stuttgart, Germany ruled in favor of the automaker. In a hearing today, Judge Carola Wittig said, "We didn't have to take evidence on whether Porsche already planned in February 2008 to take over VW. Even if that was the case, Porsche wouldn't be liable under the rules of civil law." The information that the investors used commented on Volkswagen stock, while Porsche didn't release any information on its own stock. Judge Wittig went on to say, "There was never a guarantee that Porsche wouldn't change its mind and decide the next day to do the takeover." Those suing the automaker took part in risky short selling, the judge concluded. All across Germany, investors are suing VW Chairman Ferdinand Piech and Porsche Chairman Wolfgang Porsche for a total of 5 billion euros. Currently, most of the civil litigation against the German automaker is pending, and hearings will be held on April 30, May 14, and May 21 in the Regional court of Braunschweig. Source: Bloomberg
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