It is unlikely that Porsche's former CEO will actually face court action over insider trading with VW shares, according to observers in Germany.

"I do not see the accusations being backed by facts," analyst Christoph Schmidt told Financial Times Deutschland.

"Things will fizzle out," he added.

Such accusations are difficult to prove, Schmidt said.

The offices of Porsche were raided last week after German financial regulator BaFin handed a complaint to the prosecutors office following a probe into Porsche's attempt to gain control of VW Group.

Porsche said it is rejecting these allegations while cooperating with the investigating officials 'in order to clarify the issue as quickly as possible'.