Porsche's Jackpot

In a complicated maneuver meant to facilitate a takeover of fellow German automaker Volkswagen, Porsche made $8.8 billion buying and selling VW stock options during its 2008 fiscal year — almost nine times its profit from selling cars. Those caught on the short end of the trade, including some hedge funds, had to scramble to buy VW shares, sending the price soaring to more than $1,000 a share. The only catch: Some analysts think parts of the options bet may drop into reverse in 2009, costing Porsche billions.

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