Deutsche Börse: Porsche Accepts The Futility Of Its Case - Porsche Withdraws Listing Application For Prime Standard - Quarterly Reporting An Accepted Standard In Investor Protection

Porsche AG withdrew its application for admission to the Prime Standard of the Frankfurt Stock Exchange (FWB ) on Monday. The company will therefore remain in the General Standard of the official market of the FWB. Deutsche Börse emphasized that the Prime Standard would be an option for Porsche if the company were to meet the transparency standards. This corroborates Deutsche Börse’s practice of demanding the publication of quarterly reports in the Prime Standard, in which companies must fulfill higher transparency requirements in the interest of investors. Deutsche Börse believes that Porsche had obviously come to the conclusion that its lawsuit had little prospect of success. This was also the view held by the Frankfurt Administrative Court during oral proceedings on Monday.

Porsche had filed a complaint with the Frankfurt Administrative Court against the obligation to produce quarterly reports, which has applied to companies listed in the Prime Standard since the beginning of 2003. Deutsche Börse considers quarterly reporting to be a key element in providing investors with information. “Quarterly reporting is indispensable for a quality segment in a modern, global capital market, and has established itself internationally as an accepted standard when it comes to investor protection,” said Axel Nawrath, Managing Director of Policy, Communication and Legal. The rules apply in equal measure to all issuers; Porsche should not be given exclusive freedom to flout regulations designed to protect investors. The European Transparency Directive also provides that stock exchanges are allowed to impose additional transparency requirements, thereby reinforcing the position of Deutsche Börse.

The Frankfurt Stock Exchange has operated two trading segments, Prime Standard and General Standard, since the restructuring of the German equity market at the beginning of 2003. The segments differ primarily in terms of transparency requirements. In this context, the Prime Standard is defined as the segment with stringent, internationally accepted transparency standards.