These investors have reportedly lost about a $1 billion and their court action could not be cleared in time for the two automotive giants to become one by the end of the year.
The new made public yesterday has resulted in selling of Porsche stock in Frankfurt trading, where it has closed 14 percent down for on Friday, the biggest loss since May 7th, 2009, according to Bloomberg. In addition to this, prices are now down 26 percent for the year to date, and given the fact that the merger won’t take place any time soon, it’s unlikely the stock will end the year up. Volkswagen share did not fair much better, though it was only down 3.9 percent.
“The lawsuits are posing risks that cannot be quantified,” said Tim Schuldt, a Frankfurt-based analyst at Equinet AG. “We won’t see results on the suits until next year. Moving ahead with a merger in such an unpredictable environment would be the wrong thing to do.”