VW shares up 54 % on Porsche move

Quote from Cutten:

N.B. I agree with earlier posters that this reflects badly on the exchange. Porsche could well be open to market manipulation charges simply on their announcement. At the very least, trading in the stock should be suspended and the shorts should be settled by tender offer/auction from current investors. In the old days of the NYSE and other exchanges, the exchange would suspend trading in genuine corners, then fine the cornerer more than their net profit and force liquidation.
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hmmm, would ordinary investors get the same VIP treatment? I think not!
 
Volkswagen AG rose the most in more than two months in Frankfurt trading as a potential agreement by Europe’s largest carmaker to combine with Porsche SE prompted short-sellers to buy stock to cover bets the price would drop.

Volkswagen gained as much as 27.51 euros, or 12 percent, to 257.20 euros, its biggest intraday jump since March 26, and was trading at 257 euros as of 1:07 p.m. in Frankfurt. The stock was up 2.8 percent in the week through yesterday. It declined 15 percent in the first five months of 2009.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a2Pcav5H0x_U&refer=home


Never ending story...Short sellers still nothing learnt...
 
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