German prosecutors have raided the Stuttgart headquarters of luxury car manufacturer Porsche. Prosecutors are investigating charges of insider trading levied against former chief executive Wendelin Wiederking and former finance director Holger Haerter.

Prosecutors opened the investigation after a tip from Bafin, Germany's financial market's regulator, about fraudulent activity by senior management at the luxury car manufacturer. Porsche executives allegedly attempted to manipulate the price of Volkswagen shares. Porsche has denied all the allegations.
 

Under Mr Wiederking's leadership, Porsche acquired 51 percent of VW's shares in an attempt to take over the company but the takeover failed and Porsche was left with huge debts. The two firms are now planning to merge.