The Porsche Wars: Playing Dirty

The twisted tale Porsche finds itself wrapped in these days takes another turn today with rumors surfacing that the company has manipulated the market as it attempted to take over Volkswagen back in February. The report, published in the German magazine WirtschaftsWoche claims that Porsche has attempted a domination and profit transfer agreement without making it public. Porsche has replied to the allegations in the release posted below.

"Porsche Automobil Holding SE, Stuttgart, is rejecting the allegation raised in a magazine report claiming that it has mislead investors. In its May 11, 2009, edition, 'Wirtschaftswoche' claimed that representatives of Porsche SE secretly met with a high official from Lower Saxony's state government in Berlin on February 25, 2008, and expressed the company's intention to enter into a domination and profit transfer agreement with VW. "

"This allegation is false. In a letter dated May 12, 2009, addressed to 'Wirtschaftswoche', a copy of which was forwarded to Porsche Automobil Holding SE, Lower Saxony's state chancellery clarified that such statements had in fact not been made. In the letter from Lower Saxony's state chancellery, the following is stated: 'Neither Porsche representatives nor their lawyers expressly or impliedly declared in this meeting that Porsche intends to enter into a domination agreement with Volkswagen'."

The claims of the German magazine have caught the eye of the Federal Agency for Financial Services Supervision, but Porsche says the matter has been clarified with this body.

Just as a reminder, Porsche is now involved in developing a merger plan with Volkswagen. Wolfgang Porsche, one of the owners of the company, finds himself in direct opposition to Ferdinand Piech, supporter of Volkswagen controlled future company. Even if the two sides claim to have reached a preliminary agreement, it would appear that the backstage fighting is not over yet.