Merger of porsche and volkswagen in danger

The merger of porsche and volkswagen is in danger: although parts of the investigations against former porsche boss wendelin wiedeking and his former cfo holger harter have been dropped, new ones have been added. The accusation of trade-based market manipulation has been dropped, public prosecutor claudia krauth announced in stuttgart on thursday. At the same time, the stuttgart public prosecutor’s office expanded the proceedings against the two managers to include suspicions of breach of trust.

The public prosecutor’s office is then examining the allegation that the former board members took "risks that threatened the existence" of the stuttgart-based company by entering into share price hedging transactions in the course of the failed takeover attempt – porsche wanted to swallow volkswagen. Furthermore, there are also investigations on suspicion of loan fraud against three responsible porsche employees from the finance department. It is being investigated whether they provided incorrect or incomplete information to one of the banks involved in the negotiations for the refinancing of the loans taken out by porsche automobil holding se.

Earlier in the night, porsche had announced that it might not be possible to keep to the timetable for the merger between porsche and volkswagen. As a result of the investigation proceedings against two former porsche board members, which have lasted longer than planned, the likelihood of the merger being initiated in the current year as previously planned has fallen from 70 to 50 percent, porsche announced in stuttgart late on wednesday evening. However, the project could also fail completely: "if there are significant delays in the merger process compared to the schedule of the basic agreement, the executive board of porsche se believes that the likelihood of the merger succeeding as a whole will also decrease," the statement continued.