Porsche investigation

A BaFin spokesman confirmed on Tuesday that the German regulator had launched an investigation into Porsche's buying spree last year of Volkswagen stock. At the heart of the investigation is whether Porsche properly disclosed its intent to take a majority stake in VW, according to a report in the business magazine Wirtschaftswoche.

If found guilty by BaFin, Porsche could face a hefty fine, according to the Wirtschaftswoche report. The article claims that Porsche was already scheming to take a 75 percent stake in VW in February of 2008. Yet on March 10, 2008, Porsche vehemently denied that it was pursuing such a course. The company didn't report its intentions until October of 2008. Financial securities law requires major decisions on investments to be announced immediately after they are made.

In the meantime, Porsche's buying spree caused the price of VW shares to surge. That forced speculators who had sold the stock short or borrowed it to buy whatever shares were available at vastly inflated prices. Some hedge funds and banks lost a lot of money on the shares.

Porsche has denied it did anything wrong.

Porsche debt a problem

Porsche owns 51 percent of VW shares. Yet the buying spree caused the luxury carmaker to rack up 9 billion euros ($12.22 billion) in debt. The high level of debt caused Porsche to look at merging with Volkswagen, instead of taking it over.

But VW is in no rush for the merger to go forward, VW chairman Ferdinand Piech said on Tuesday. Piech, the grandson of Ferdinand Porsche, told reporters that Porsche "has its own financial problems to solve" before a deal can go forward.

"I cannot imagine that Volkswagen would shoulder someone else's risk."