Porsche ’s failed acquisition of Volkswagen – Europe’s largest automaker – raised more than a few eyebrows in the automotive industry, and the David vs. Goliath saga apparently grabbed the attention of local authorities. German prosecutors raided Porsche’s Stuttgart headquarters today on suspicion of possible security violations and market manipulation.
According to Bloomberg, German officials raided Porsche’s headquarters earlier on Thursday, seizing several financial documents. It is believed that breached several security laws, including leaking insider information.
“Based on evidence provided by Bafin (the German regulator), 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, told Bloomberg.
German officials are also investigating former Porsche CEO Wendelin Wiedeking and former CFO Holger Haerter.
Although Porsche has not been found guilty of any illegal activities, it seems that the German sports car maker has landed itself in some pretty hot water. Many questioned how such a small company could swallow one of the world’s largest automakers, and it looks as though officials may have uncovered the answer. Stay tuned as the events unfold.
