Former Porsche CEO And CFO's Houses Raided
As disclosed two days ago, German regulators staged a raid at the office of German carmaker Porsche to determine whether the car company had been manipulating Volkswagen stock prices, leading to a massive squeeze and the eventual suicide of Adolf Merckle who lost a fortune on what allegedly may have been a Porsche orchestrated act. It seems the investigation is taking a turn for the serious, with Bloomberg reporting that today former Porsche CEO Wendelin Wiedeking and former CFO Holgar Haerter had their homes raided by investigators earlier in the day.
Two properties were raided by several dozen civil servants as part of an investigation of possible violations of securities law and market manipulation, Claudia Krauth, spokeswoman for the Stuttgart, Germany-based prosecutor’s office, said today by telephone.
This begs the question of when (not if) fraud is uncovered (sorry, but Volkswagen having the biggest market cap of any company in the world was just a little strange), whether Porsche ends up having to disgorge all of its billions in option derived profits (granted, they were primarily on paper due to subsequent "complications"). And, further, whether this impact the ongoing Porsche-Volkswagen merger, as a sudden billion dollar sinkhole will likely make Qatar and other interested parties quite nervous.