Porsche has revealed that Wendelin Wiedeking, the German manufacturer’s former chief executive, is being investigated by German prosecutors over market manipulation accusations.

Porsche’s former chief financial officer Holger Harter is also being investigated.

The announcement follows on from a raid on Porsche’s Stuggart headquarters yesterday to seize documents relating to Porsche’s attempt to takeover Volkswagen.

The accusations were launched by Bafin, Germany’s financial regulator, and accuse Porsche of misleading markets about its ambitions to take over VW.

Porsche has rejected the allegations but said it was fully cooperting with the investigation.

Porsche said: “Mr Wiedeking and Mr Harter are supporting the prosecutors fully.”