Public Prosecutor Accuses Ex-Porsche Boss Wiedeking

2023 Author: Eric Donovan | [email protected]. Last modified: 2023-08-25 09:36

The Stuttgart public prosecutor has brought charges against the former Porsche managers Wendelin Wiedeking and Holger Härter. However, it is not yet certain whether a lawsuit will take place.

After the failed takeover attempt at Volkswagen, the ex-Porsche board members Wendelin Wiedeking and Holger Härter are to be brought to trial for manipulating the share price. The Stuttgart public prosecutor brought charges on Wednesday and accused the former top managers of having deceived investors and the financial world during the attempt to take over Porsche at Volkswagen in 2008/09.

Porsche Chief Financial Officer Härter also in court for credit fraud

The public prosecutor is convinced that the Porsche managers have hidden their intention to take power at VW and disclosed too late. In its communication, the authority only mentions two former board members without naming their names. Defense lawyers von Wiedeking and Härter rejected the accusations from the indictment as "unfounded" in a joint statement on Wednesday. The Stuttgart Regional Court must now decide whether it will allow the prosecution to prosecute and actually start a hearing.

Ex-Porsche boss Wiedeking and his then CFO Härter were the investigators' focus for years until the current decision on an indictment - but much of the bundle of initial accusations has since been dropped. There were initially allegations of two types of market manipulation offenses, one of which was dropped in spring 2011. In the end, the prosecution did not bring charges of breach of trust, which had been maintained until the current announcement.

However, a loan fraud process started this September against Härter. He and two of his executives from the finance department at the time are also said to have misinformed a bank during loan negotiations in connection with the ultimately unsuccessful attack on VW. There is no end in sight to this process. There had never been any investigations in this direction against Wiedeking.

Process opens up opportunities for investors

From the perspective of many at Porsche, Wiedeking is still regarded as a gifted renovator and talented manager. After the spectacularly failed takeover attempt, which resulted in billions of euros in debt for Porsche, Wiedeking and Härter had to leave. VW turned the tables and became a savior for Porsche in an emergency.

A possible indictment at the Stuttgart Regional Court could also have an impact on the parallel billions in civil law suits against the Porsche parent company SE at the Braunschweig Regional Court. There, investors are arguing for damages after the failed takeover attempt at VW. And once the Stuttgart criminal proceedings have been opened, those involved in the civil proceedings would have the chance to inspect files, for example via minutes from board meetings. This could theoretically contain ammunition for civil proceedings. (dpa)