Porsche SE, the sports-car maker being bought by Volkswagen AG, was raided by German prosecutors in an investigation of possible violations of securities law and market manipulation.
Officials seized documents from the Stuttgart headquarters this morning, Porsche said in a statement. The carmaker said it rejects the allegations and is cooperating with German authorities. BaFin, the regulator, handed a complaint to the prosecutor's office after a probe into Porsche's attempt to gain control of VW, said Anja Engelland, an agency spokeswoman. BaFin also is examining movements in VW securities in "recent days."
Prosecutors are investigating former managers of Porsche including ex-Chief Executive Officer Wendelin Wiedeking and former Chief Financial Officer Holger Haerter, Die Welt reported earlier today. The two men, who left the company last month, "have declared full readiness to cooperate" with prosecutors, Porsche spokesman Frank Gaube told Bloomberg News.
Volkswagen common shares extended their decline in the past six days to 36 percent as Porsche SE exited the stock and short- sellers increase bets that losses may widen. The shares fell 1.2 percent to close at 144.31 euros in Frankfurt. The preferred stock dropped 7.9 percent to 63 euros after a 15 percent jump yesterday. Porsche declined 1.4 percent to 53.44 euros after six days of advances.
Probing for Leaks
"Based on evidence provided by Bafin, we have opened a preliminary investigation into suspected market manipulation and unauthorized leaks of insider information," Claudia Krauth, a spokeswoman for the prosecutor's office, said by phone, declining to name individuals under investigation.
VW's common stock has retreated since Porsche said Aug. 14 that it's selling a majority of its VW options to Qatar. The emirate paid 80 euros for the carmaker's common shares, Manager- Magazin said yesterday, citing unidentified people close to Porsche. The magazine added that Porsche also held options on VW's preferred stock and is selling them to Qatar.
