A profound sigh of relief must have resonated in from Stuttgart via Wolfsburg to Salzburg after a regional court in Stuttgart announced its decision: The claim for damages against Porsche SE, calculated at €1.36 billion ($1.89 billion), has been roundly and categorically dismissed.
Nearly two-dozen U.S.-based hedge funds had dragged Porsche into court in the aftermath of the attempted takeover of Volkswagen by Porsche, which led to a massive stock-market rally. In 2008, Porsche sent out a press release denying any plan to take over Volkswagen. But shortly thereafter, the company reversed course and announced plans to do just that. The hedge funds claim they were deceived by Porsche's press release disavowing any takeover schemes and adjusted their strategy accordingly.
In today's decision, Stuttgart judge Carola Wittig stated, "press releases are not targeting institutional investors, but the general public." She then added what might have been assumed common knowledge: "On the stock market, they (press releases) are trusted far less than the mandatory ad-hoc announcements." (Memo to the hedge funds: You could have asked Car and Driver.)
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Nearly two-dozen U.S.-based hedge funds had dragged Porsche into court in the aftermath of the attempted takeover of Volkswagen by Porsche, which led to a massive stock-market rally. In 2008, Porsche sent out a press release denying any plan to take over Volkswagen. But shortly thereafter, the company reversed course and announced plans to do just that. The hedge funds claim they were deceived by Porsche's press release disavowing any takeover schemes and adjusted their strategy accordingly.
from Car and Driver Blog http://ift.tt/nSHy27
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