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German Investigation of Porsche's VW Trades Widens

BERLIN — An investigation into possible violations by Porsche regarding the trading of Volkswagen shares has spread outside the sports-car maker’s home base of Stuttgart to Frankfurt.

Frankfurt prosecutors have asked BaFin, the country’s financial regulator, to help them in the case, Thomas Bechtel, a spokesman for the prosecutor’s office, said by telephone Monday. The investigation was prompted by a complaint filed by two attorneys about two months ago, he said, declining to identify the lawyers.

Prosecutors in Stuttgart, the capital of Porsche’s home state of Baden-Württemberg, earlier this month began looking into the activities of a number of people, including Wendelin Wiedeking, the ex-chief executive of Porsche, and the former chief financial officer, Holger P. Härter.

Porsche offices and the private homes of executives were searched Aug. 20. BaFin had asked Stuttgart prosecutors to investigate allegations of market manipulations and possible violations of security rules.

“The outcome is very difficult to predict,” Marc-Rene Tonn, an analyst with M.M. Warburg in Hamburg who recommends that investors buy Volkswagen shares and hold on to Porsche’s stock. “At least it’s being investigated now.”

Frank Gaube, a spokesman for Porsche in Stuttgart, did not return a phone call and e-mail seeking comment. Porsche rejected allegations of market manipulation and breaching disclosure requirements following the search of its headquarters. It said at the time that it was offering authorities “full support.”

After BaFin had dropped a first investigation into the matter in March, it restarted its review in May based on media reports, finally yielding the Stuttgart case. The reports also prompted the lawyers to file their complaints, said Mr. Bechtel. The attorneys’ complaint was sent to Frankfurt and Stuttgart. Stuttgart prosecutors sent their copy to their Frankfurt colleagues, he added.

“We have no suspects named so far,” said Mr. Bechtel. “We are looking into responsible people at Porsche on suspicions they may have manipulated the markets and violated disclosure rules.”

BaFin is also investigating the matter at the moment, said Mr. Bechtel. Frankfurt prosecutors are waiting for the results of the regulator before taking further steps, he added.

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