Hedge funds sue Porsche over VW takeover

<p>Porsche is the subject of a £1.8 billion lawsuit.</p>

A group of seven hedge funds have launched a lawsuit against sports car manufacturer Porsche after a failed takeover bid with Volkswagen.

The hedge funds announced that they are seeking 1.8 billion euros (£1.5 billion) in compensation as a result of the failed bid.

They are accusing Porsche of misleading stock markets in the build-up to its takeover bid for VW in 2008, but Porsche denies any wrongdoing.

"Porsche SE and its supervisory board members will defend themselves with all available legal means," the carmaker said.

At one stage, Porsche either owned or had positions on 74 per cent of shares in Volkswagen, which is short of the 75 per cent figure required to launch a formal takeover bid.

Following the news of the lawsuit against Porsche by the hedge funds, shares in the car manufacturer dropped on the Frankfurt stock exchange.

By 11:53 GMT, stocks in the company were 0.5 per cent down for the day.

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