US court ruling fires up Porsche shares

January 3, 2011 12:00 am

, FRANKFURT, Jan 3, 2011 – Shares in German luxury sports car maker Porsche roared into the new year, gaining more than 11 percent in early trading on Monday after a US lawsuit against the company was thrown out.

Porsche stock showed a gain of 11.30 percent to 66.4 euros in over the counter trading in their first day the market was open since the ruling was announced.

Shares in Volkswagen, which is in the process of acquiring Porsche, leapt by 2.97 percent to 125 euros, to lead the DAX index of German blue chips which was 1.10 percent higher overall.

On Thursday, the US District Court for the Southern District of New York granted Porsche\’s motion to dismiss complaints brought by US hedge funds.

Elliott Associates and Black Diamond had claimed more than two billion dollars in damages over a failed 2008 attempt by Porsche to take over VW.

A total of 39 plaintiffs had accused Porsche of not coming clean in 2008 about its intention to acquire VW, Europe\’s biggest automaker, and of having manipulated the stock market in the process.


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