German Securities Probe Could Kill Porsche-VW Deal

Law360, New York (February 24, 2011, 2:02 PM EST) -- German prosecutors announced Thursday they had broadened a market manipulation probe into former top executives at Porsche SE — a move which will delay, and could kill, its proposed merger with Volkswagen AG.

The prosecutor's office in Stuttgart originally had been investigating allegations of market manipulation by top Porsche executives prior to the company's ill-fated bid to take over Europe's largest auto maker. The investigation will now include accusations of breach of trust and credit fraud.

According to a report in the New York Times, the...
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