Oct. 28 (Bloomberg) -- Germany's financial regulator BaFin said it's analyzing trading in Volkswagen AG shares but has not opened a formal inquiry into whether the stock is being manipulated.

``We are in the process of analyzing Volkswagen trading, but thus far there is no formal investigation,'' Anja Engelland, a spokeswoman for Bonn-based BaFin, said today in a telephone interview. ``Pure cash-settled options do not require disclosure'' under German law.

Results from the regulator's analysis are unlikely this week, she said.

Volkswagen became the world's biggest company by market value today after Porsche SE announced plans to raise its stake in the German carmaker to 75 percent, triggering demand from short-sellers.

To contact the reporter on this story: Chris Reiter in Berlin at creiter2@bloomberg.net

Last Updated: October 28, 2008 05:22 EDT