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Porsche wins legal battle over failed takeover

The Local · 31 Dec 2010, 11:41

Published: 31 Dec 2010 11:41 GMT+01:00

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The US District Court for the Southern District of New York granted Thursday Porsche's motion to dismiss the complaints in the Elliott Associates and Black Diamond actions in their entirety, Porsche said in a statement.

A total of 39 plaintiffs had accused Porsche of not coming clean about its intention in 2008 to acquire VW, Germany and Europe's biggest automaker, and of having manipulated the market.

Porsche caught investors by surprise in October 2008 when it said it had built up a 75-percent stake in VW, causing violent swings in VW's share price and at one point making it the world's biggest company by market value.

Speculators, including hedge funds, who had bet VW shares would fall were forced to cover their positions at enormous cost.

Porsche was later caught out by the global economic crisis and ended up abandoning its bid for VW, which turned the tables last year and bought nearly half of Porsche's equity. VW plans to acquire the rest by 2011.

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The plaintiffs have 30 days to file an appeal, the German firm added.


The Local (news@thelocal.de)

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Your comments about this article

13:01 December 31, 2010 by Prufrock2010
Good. I love it when sleazy hedge fund manipulators are hoist on their own petard.
19:41 January 2, 2011 by DOZ
No matter what, a VW built outside of Germany will never be a real VW. I would never buy a VW made in Canada, or VW parts made outside of Germany, that's for sure. If you want a good VW, only buy one that was made in Germany.
00:31 January 3, 2011 by rfwilson

What do you mean "If"? It's not like there is a space in the order form that allows the customer to specify where the car can be made! As for VWs built in Canada, don't worry... there are none. Also, back when we in the North American market actually could get VWs made in Germany, their reliability was nothing to get excited about! The Made-in-Mexico Jettas we get her in Canada these days actually have a pretty good reliability record now.
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