Kick ’em when they are down: The district attorney of Stuttgart has initiated a probe against former Porsche CEO Wendelin Wiedeking and former CFO Holger Härter. This after Germany’s financial watchdog Bafin has filed a complaint against the two. They are under suspicion for market manipulation and illegal disclosure of insider information, Die Welt reports. Prosecutors raided the offices of Porsche and impounded files.
This is the second time Bafin has looked into the matter. After the VW stock jumped to over €1000 last October because of short covering and after many hedge funds received a serious hedge trimming, Bafin initiated an investigation, but found nothing untoward.
Now, as the miraculous managers are gone, the Berlin watchpuppy grows teeth. If the allegations are proven, the former highflyers may be doing time behind instead of in bars.
In addition, Bafin is “monitoring the stock movements of the last few days closely,” as a speakstress of Bafin said. The Emir of Qatar announced that he purchased options for 17 percent on the common stock of VW and on 50 percent of the preferred. When this became public, the common lost more than 40 percent, whereas the preferred gained 15 percent. No formal investigation into these transactions has been started, says Bafin. The movements are understandable given the option deals and speculations that the common will be swapped for the preferred in the German main stock index DAX.