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Filed under: Europe, Government/Legal, Porsche, Volkswagen, Earnings/Financials

The Volkswagen takeover of Porsche may look like a slam-dunk, but a group of investment funds is hoping to change that. Bloomberg reports that the investment group has filed a lawsuit in Stuttgart, Germany, seeking $2.6 billion in damages. The group's issue traces back several years earlier to when Porsche attempted to take over the infinitely larger VW.

The group said in a statement that 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."

The group's version of the VW takeover story is similar to the one we heard about in a 2010 lawsuit, but Porsche apparently denies the accusations. Porsche spokesperson Frank Gaube has reportedly said the automaker will need to receive the suit before it could be closely examined. Bloomberg says that the investment group has also filed an arbitration application against VW.Investment groups file $2.6B suit against Porsche over VW takeover bid originally appeared on Autoblog on Tue, 03 Jan 2012 17:44:00 EST. Please see our terms for use of feeds.

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