Porsche-VW merger trouble...stock plunges
Discussion
One of the problems with the current economic climate, it further exacerbates the situation as everyone is looking to sue each other and lay blame everywhere especially with a focus on short-selling, etc., etc. Not to mention the share-holding structures of some German co's and the added complications these bring.
No chance of cheap Porsches any time soon then
No chance of cheap Porsches any time soon then
"The plaintiffs claim they were harmed by market manipulation in the trading of VW shares and disclosure rule violations."
Hang on.... They were harmed because they bet on VW shares falling during the downturn. They figured VW shares would drop and they could clean up by short selling VW shares. They were unaware Porsche had built up an almost 75% stake in VW through intermediaries.
When Porsche announced it owned almost 75% of VW, rather then dropping in value, VW's share price shot up, leaving the shortsellers with huge losses.
They're complaining that Porsche failed to disclose what they were doing, despite the fact that it appears Porsche complied with all the relevant German laws. This all comes down to a simple fact, they lost a bet and rather then put it down to hubris they believe it's someone else's fault.
Hang on.... They were harmed because they bet on VW shares falling during the downturn. They figured VW shares would drop and they could clean up by short selling VW shares. They were unaware Porsche had built up an almost 75% stake in VW through intermediaries.
When Porsche announced it owned almost 75% of VW, rather then dropping in value, VW's share price shot up, leaving the shortsellers with huge losses.
They're complaining that Porsche failed to disclose what they were doing, despite the fact that it appears Porsche complied with all the relevant German laws. This all comes down to a simple fact, they lost a bet and rather then put it down to hubris they believe it's someone else's fault.
I'm a capitalist but I get so peed-off at these guys and their attitude of "oh, I got stiched-up" and their failing to accept responsibility for their own screw-ups. They live and work in global free markets so either they learn to accept the good with the bad and take a few losses on the chin otherwise find something else to do.
As long as they don't turn Porsche into another GM or, god forbid it, an MG Rover or a SAAB....
As long as they don't turn Porsche into another GM or, god forbid it, an MG Rover or a SAAB....
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