Deutsche Borse says it does not understanding Porsche’s announcement that it plans to sue the Frankfurt Stock Exchange for requiring it to file quarterly reports. “With this lawsuit Porsche is resisting international standards designed for the protection of investors,” says Axel Nawrath, Managing Director of Deutsche Borse. “Porsche cannot expect to be treated as an exception to rules that serve to protect investors and are supported by all other investors and issuers alike.”
Quarterly reporting is standard in international capital markets communication, says Deutsche Borse, citing the European Union in support (the EU, which intends to require quarterly reporting for all companies). Doing without quarterly reporting, as Porsche is demanding, says the exchange, would be a step backward for the European capital market.
Deutsche Borse adds that the segmentation of the German equity market gives Porsche an alternative. Prime Standard was introduced in the interest of investors as the segment with the highest transparency standards. Every company has to decide which investors it wants to reach, and then meet the standards that these investors demand. Companies that do not want to meet the requirements in Prime Standard or are unable to do so, will find an attractive segment in General Standard. This option is also open to Porsche.