Porsche denies blame for VW stock chaos
DDP/DPA/The Local · 29 Oct 2008, 11:06
Published: 29 Oct 2008 11:06 GMT+01:00
Germany's leading stock index plunged in early trading on Wednesday morning after inflated VW shares dropped on news Porsche planned to increased the amount of shares in circulation by selling up to five percent of the stock it had acquired. The luxury carmaker, which announced over the weekend it had scooped up over 40 percent of VW stock, said it was not to blame for the massive surge in VW stock this week.
Porsche said the unusual distortions to Germany's equity markets had been caused by speculators covering positions – and not the Stuttgart carmaker's intention to acquire a controlling 75 percent of Volkswagen stock.
As VW stock has skyrocketted in recent days – at one point topping €1,000 per share – investors in Germany have slammed the officials at Deutsche Börse for allowing the stock to warp the value of the DAX index.
Many large investment funds mirror the makeup of the DAX – which compelled Deutsche Börse on Tuesday evening to annouce it would cap the weight of VW shares at 10 percent of the index starting on Monday.