Porsche chairman Wendelin Wiedeking is expected to face some tough criticism at the company’s annual general meeting tomorrow, despite a highly successful year.
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Porsche profits before taxes were $11.6bn in its financial year ending July 2008, more than its total revenues from sales of $10.2bn, thanks to stock hedging. But last autumn it was accused of secretly buying up Volkswagen shares, and then announcing that it owned them, only to send the VW share price spiraling, and causing hefty losses amongst short sellers betting that the share price would continue its downward course.
According to the leading German financial daily newspaper, Frankfurter Allgemeine Zeitung, five large investment funds have called for Wiedeking to be investigated by the national commission for corporate governance.
Porsche said it did not manipulate the share price and, in defence, maintains it is not in its interest to see the VW share price rise. But, because of the high share price, it now seems unlikely that Porsche will be able to increase its shareholding in Volkswagen to 75% this year as planned.
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