STUTTGART, Germany — Porsche warned that a widening investigation by German prosecutors into two of the luxury car company’s former top managers could derail its planned merger with Volkswagen (VW), the Financial Times reported Friday.
The Stuttgart, southern Germany-based producer warned Thursday that there was now only a 50 percent chance the merger agreement would be completed by 2012, after prosecutors said the investigation into former Porsche CEO Wendelin Wiedeking and former finance chief Holger Haerter would continue until at least the end of this year, the report said.
Porsche added that the deal could be abandoned completely, causing the company’s shares to close Thursday down 11 percent.
The two companies previously cautioned that German tax issues and a US lawsuit could delay the merger by around three years.
Speaking on behalf of the prosecutors, Claudia Krauth said allegations of market manipulation solidified during the criminal investigation, which was being broadened to include allegations of breach of trust.
Wiedeking and Haerter came under investigation in August 2009 after Porsche’s attempt to take over VW failed, nearly driving the company into bankruptcy.
Both deny any wrongdoing.