Porsche board members face 1.8bn euros lawsuit

Porsche logos Porsche has denied any wrongdoing in its failed takeover bid for Volkswagen

Porsche's chairman Wolfgang Porsche and board member Ferdinand Piech are being sued by seven hedge funds over its failed takeover bid for Volkswagen.

They are seeking 1.8bn euros ($2.4bn; £1.5bn) in compensation.

Porsche has been accused of misleading markets in the run-up to its takeover bid for VW in 2008.

Porsche initially dismissed speculation it was seeking to take over 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.

However, 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.

"Porsche SE and its supervisory board members will defend themselves with all available legal means," the carmaker said.

Dramatic takeover

Porsche's attempt to take over Volkswagen eventually failed as it fell short of acquiring the required 75% stake.

The global financial crisis and the slump in the automotive sector made it difficult for the carmaker to raise enough money to buy the remaining stake.

Nevertheless, it accumulated large amounts of debt in the process and was sued by investors who accused it of misleading them.

In a dramatic turnaround of events, the firms agreed a deal in 2009 under which Volkswagen agreed to take over Porsche.

Volkswagen acquired a 49.9% stake in Porsche in 2009.

In 2012, the firms agreed another deal, under which Volkswagen bought the remaining 50.1% stake in Porsche for 4.46bn euros plus one VW common share.

More on This Story

Global Car Industry

More Business stories

RSS

BBC Business Live

  1.  
    BARCLAYS PROFITS 07:55: BBC Radio 4

    Back to Barclays profits for a moment as Anthony Jenkins also tells Today that staff at his bank are changing their ways: "Staff at Barclays are fully behind what we're trying to do with our culture change programme." He says staff know this is not only "the right thing to do" but also the way to better profits.

     
  2.  
    ELECTRICITY CUT 07:43:
    Pylons

    Regulator Ofgem has announced a cut in distribution charges that will mean a £12 a year average reduction in electricity bills. And, incidentally, offers us the opportunity to publish a nice picture of pylons.

     
  3.  
    BANKER BONUSES 07:32: BBC Radio 4

    Barclays boss Antony Jenkins tells the Today programme his bank can already take action against mis-behaving bankers: "If someone has done something wrong and performed badly we have the right too claw the bonus back today."

     
  4.  
    HEADLINES
  5.  
    BARCLAYS PROFITS 07:27: BBC Radio 4

    Antony Jenkins, chief executive of Barclays is on the Today programme: "These are an encouraging set of results... Our capital position has never been stronger."

     
  6.  
    ITV PROFITS 07:27:

    ITV boss Adam Crozier says the broadcaster's "share of viewing" improved during its second quarter helped by the World Cup. He says he is confident of ITV's Autumn schedule of both new and returning drama and entertainment will help keep audience figures high. Meanwhile, ITV has benefitted from the economic recovery - specifically an improved advertising market.

     
  7.  
    BARCLAYS PROFITS 07:19:

    Investment bank income at Barclays fell 18%, reflecting a fall in customers. This follows allegations about malpractice in "dark pool" trading. Essentially, these are private stock markets and are the latest area of banking to be probed by regulators.

     
  8.  
    ITV PROFITS 07:19:

    ITV says total external revenues rose 7% to £1.2bn in the six months to 30 June, while revenue from its online, pay and interactive TV unit was up 20% to £67m.

     
  9.  
    BARCLAYS PROFITS 07:13:
    Barclays logo

    More on Barclays: Statutory pre-tax profit was £2.5bn (2013: £1.7bn), reflecting the fact bank had to set aside another £900m for PPI redress Read the full release here.

     
  10.  
    ITV PROFITS 07:10:
    ITV logo

    A strong set of numbers from broadcaster ITV this morning. Annual pre-tax profits are up 40% to £250m in the six months to 30 June compared with £179m for the same period last year.

     
  11.  
    BARCLAYS PROFITS 07:03:

    Barclays profit before tax is down 10% at £3.84bn.

     
  12.  
    BRITISH GAS BOSS 07:03:
    Iain Conn

    In all the excitement over bankers' bonuses we nearly forgot this. British Gas owner Centrica has succeeded in its pursuit of Iain Conn, confirming he will become its new chief executive from January 2015, succeeding Sam Laidlaw who is retiring. Mr Conn joins from BP where he has been chief executive, of BP's refining and marketing division,for the past seven years.

     
  13.  
    BARCLAYS PROFITS 06:52: BBC Radio 4
    Pedestrians pass a branch of Barclays Bank in the rain in London

    Michael Hewson, chief market analyst at CMC Markets is talking to the Today programme about Barclays interim results - coming up imminently. He says the investment banking arm of Barclays is "not listening" to new boss Antony Jenkins who has been trying to clean up the bank's reputation and practices.

     
  14.  
    DRIVERLESS CARS 06:44:
    Nissan car

    It's going to be a bank-heavy day today let's face it, but just to provide a break from all that, the government will be announcing changes in the law that will pave the way for driverless cars to take to Britain's roads next year. The government wants the UK to become a leader in developing the technology. In December, the Treasury said it would create a £10m prize to fund a town or city to become a testing ground for the cars.

     
  15.  
    MUSLIM ACCOUNTS 06:36:

    HSBC has told three Muslim organisations it will close their bank accounts. These are the Finsbury Park Mosque in North London, a think-tank on Islamic issues called the Cordoba Foundation based in West London, and a Muslim charity in Bolton called the Ummah Welfare Trust, which works in 20 countries giving aid. HSBC says the decisions were "absolutely not based on race and religion".

     
  16.  
    BANKER BONUSES 06:30: Radio 5 live

    More from Ms Mangwana on Wake Up to Money. She says the proposed seven year rule may be more about changing culture in banking and the way in which bankers view their bonuses. But she also points out bonuses are generally paid in tranches that vest over a number of years, already (commonly anything between three and five years). "That's the current formula and there are [already] mechanisms to reclaim those bonuses," she says.

     
  17.  
    TWITTER SHARES 06:21:
    Twitter

    In case this happened too late for you, Twitter shares rocketed 30% on stronger-than-expected financial results. Revenue more than doubled in the second quarter. Shares rose to $50 in after hours trading. Still down on its high of $74.73, hit in December.

     
  18.  
    BANKER BONUSES 06:10: Radio 5 live

    Samantha Mangwana, employment lawyer at Slater Gordon told Wake Up to Money seven years is a long time to hold a bonus and regulators may well find it difficult to reclaim money. It is highly likely bankers will have gone and spent the money already, she says, and have nothing that the Bank of England can reclaim.

     
  19.  
    BANKER BONUSES 06:07: BBC World News
    Tom Stephenson

    Those new rules on bankers' bonuses are expected to recommend a claw-back period of seven years. Tom Stephenson from Fidelity Worldwide on BBC World News says they could have been tougher: "One of the suggestions was that bankers could be jailed for a significant fall in profits - that's quite something isn't it. Even so, being able to claw back bonuses for seven years is pretty draconian."

     
  20.  
    06:02: Matthew West Business Reporter

    Good morning folks. It's looking like a busy day today. We also have trading updates from ITV and house builder Taylor Wimpey. As always you can get in touch via email at bizlivepage@bbc.co.uk and on twitter @bbcbusiness

     
  21.  
    06:00: Rebecca Marston Business reporter, BBC News

    Welcome again to the Live page. We're going to be banking heavy. There's Barclays results - in about an hour - and later this morning the Bank of England will release new restrictions on bankers' bonuses, said to be the toughest in the world. We'll see.

     

Features

From BBC Capital

Programmes

  • A digger operated via an Oculus Rift and a controllerClick Watch

    Why controlling a heavy digger with a virtual reality helmet might improve safety

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.