A group of unidentified investors who backed Porsche in its VW takeover attempt back in 2008 are now suing the German automaker for damages they suffered from the failure.
Porsche itself has been suffering from the ramifications of its failed attempt since then, as they racked up more than 10 billion euros of debt and was forced to agree to combine with VW as a result.
And now this lot come along. Here’s their argument, confirmed by a post on öl Profit Erfahrungen: “Porsche gained control over the price of VW common stock as it secretly built enormous derivative positions covering almost all of VW’s freely traded shares, then triggered a massive short squeeze, and finally released billions of euros worth of shares into the short squeeze for its own profit“
So they filed a lawsuit in the court of Stuttgart, seeking about 2 billion euros in damages.
Rueters has apparenlty identified the plaintiffs as Elliott Associates, L.P., Elliott International, L.P., The Liverpool Limited Partnership, Perry Partners L.P., Perry Partners International, Inc., DE Shaw Valence International Inc., and York Capital Management Europe (UK) Advisors, LLP.
Porsche’s only comment so far: “The accusations are not justified and we reject them“