German court clears former Porsche chief executive over VW bid

A German court has acquitted Wendelin Wiedeking, a former chief executive of Porsche, of alleged market manipulation in the course of one of the auto industry's most controversial takeover battles.

“I am extraordinarily overjoyed,” Mr Wiedeking (63) said yesterday. “I have always said I am innocent.”

In 2008, at the height of the financial crisis, the Stuttgart-based sportscarmaker moved to acquire more shares in its much larger relation, Volkswagen, buying shares and options before revealing that it had a stake of 42.6 per cent as well as call options relating to a further 31.5 per cent.

As the options were due for cash settlement, not physical delivery of the shares, they were not subject to the same shareholding disclosure rules.

However, Mr Wiedeking was accused of misleading the market about his intention to control VW as it only announced its intention to increase its direct stake to more than 50 per cent after disclosing the options position, which had sent VW’s share price soaring, making it briefly the world’s most valuable firm. – (Reuters)