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Porsche sued over VW deal bid

2012-01-01 08:39

BERLIN, Germany - A group of investment funds is suing Porsche for €2-billion because the automaker's merger with the VW group failed in 2008.

The funds' lawyers said Saturday the claim was to cover fund losses after Porsche stunned markets with its announcement in October 2008 that it was acquiring 75% of VW which led to a huge surge in the value of VW shares.

SAVED BY VW

VW shares briefly shot above €1000 but at the time Porsche stressed it was not responsible for the panic buying, reportedly by investment funds, that had seen VW stock hit the roof after Porsche unveiled its position.

Porsche's bid to take over VVW ultimately failed and the indebted car company was was in turn saved by VW

In their suit, the investment funds argue that Porsche manipulated the stock market as its announcement that it was taking over VW and the reasons for its move had come late.

US investment funds have already filed another complaint against Porsche which says their action was "unfounded".

Plaintiffs in the uit filed in the New York State Supreme Court in March claim that actions by Porsche caused them to lose more than €1-billion.

A group of 39 investment funds filed suit against Porsche in 2010 which said the German carmaker lied about its plans to take over the biggest European carmaker.

AFP