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First Post – German prosecutors are investigating executives at the sportscar firm over allegations of share-manipulation.
Porsche denied any disclosure irregularities but many hedge funds and investment management firms were left wrong-footed after it made a shock announcement that it held more than 50 per cent of VW’s shares. German regulator BaFin dropped its initial investigation but re-opened it after claims that the incident was bringing the entire German stock market into disrepute.
Ex-chief executive Wendelin Wiedeking is among the Porsche figures being investigated by the German authorities over share manipulation claims. Yesterday Porsche’s headquarters were raided in the course of investigations into recent trading activities.The allegations revolve around the failed takeover of Volkswagen, during which Porsche took large positions in VW stock. Prosecutors allege that inside information was leaked in pursuit of the failed bid.
Reuters UK – Hedge funds have increased their bets on a fall in voting shares in Europe’s biggest carmaker Volkswagen, according to data on Tuesday, despite the heavy losses suffered by such funds last year.
Hedge funds shorting VW were caught out in October when VW shares more than quadrupled after Porsche announced it had effective control of 74.1 percent of VW.
This left less than 6 percent tradeable in the market and saw funds scrambling to cover their positions.
Guardian.co.uk – Big gains on derivative bets linked to Volkswagen shares offset a decline in nine-month earnings at Porsche SE’s core sports car business, the heavily indebted holding company said on Friday.
Porsche, scrambling to shore up its tattered balance sheet, blamed lower volumes and revenue as well as investments on its upcoming fourth model line and hybrid powertrain technology but insisted that its returns remained relatively healthy.
"A high earnings margin was still achieved," the company said in a statement, while a company spokesman added that it was "nearly in the double-digits".
That is still a drop from Porsche’s traditional margins of near 20 percent when markets were strong.
Times of the Internet – Hedge funds have gained ammunition for complaints against German sports car maker Porsche after it said it made almost 400 million euros (514 million dollars) in bets on German blue-chip stocks, a press report said on Monday.
The Financial Times quoted Porsche chief financial officer Holger Haerter as saying that the company had gained 392 million euros in its 2007/2008 fiscal year from trading in options on German stocks, in addition to controversial gains from trades in VW shares.
"We have also arranged share options to generate liquidity. The underlying shares were referring to DAX (Frankfurt blue-chip index) companies and not to Volkswagen," the FT quoted Haerter as telling an annual general meeting.
