Porsche chairman being sued over VW takeover bidMonday 03 February 2014 07.34
Porsche's chairman - Wolfgang Porsche - and board member Ferdinand Piech are being sued by seven hedge funds over its failed takeover bid for Volkswagen.
The hedge funds are looking for €1.8 billion in compensation, accusing Porsche of misleading markets in the run-up to its takeover bid for VW in 2008.
Porsche initially dismissed speculation it was seeking to takeover VW, but later revealed that it owned or had positions on almost 74% of VW shares.
Some investors had bet against Volkswagen shares, expecting them to fall in the absence on any firm takeover bid from Porsche.
But, Porsche's disclosure of an increased holding triggered an unprecedented stock market squeeze on VW shares as investors rushed to buy them to cover their short positions.
Porsche, which has earlier faced similar cases, has denied any wrongdoing.