Investigations Opened Into Former Metro Group Managers for Alleged Market Manipulation, Insider Trading
06 November 2017 - 3:55PM
Dow Jones News
By Ulrike Dauer and Max Bernhard
German prosecutors have opened investigations into managers of
the former Metro Group, following allegations of market
manipulation and insider trading in connection with the company's
demerger into Metro AG (B4B.XE) and Ceconomy AG (CEC.XE).
Five managers of the former Metro are being investigated for
alleged market manipulation based on the suspicion that the company
may have delayed the announcement of its demerger plans, which were
published March 30, according to the prosecutors office in
Dusseldorf. Such a delay could have allowed someone who knew of the
operation to take advantage of that knowledge.
The investigations into alleged insider trading focus on three
managers and one external person. The prosecutors suspect that two
employees allegedly purchased Metro shares shortly before the deal
was announced. A third person didn't work for the company but
allegedly bought shares following a tip from an employee.
A spokesman for the prosecutor did not comment on whether any of
the people were the subject of both investigations.
The demerger took effect in July, splitting Metro into two
separately listed companies--Metro AG, a wholesale and food
company, and Ceconomy AG, a retailer focused on consumer
electronics.
The new Metro's premises were searched on Friday by prosecutors
and police, after Germany's markets supervisory authority filed
charges alleging insider trading and market manipulation.
A Metro spokesman said the company "will continue to fully
cooperate with the authorities." He declined to add anything to a
statement from Friday, when the company said plans to split into
two companies were published "punctually and in accordance with the
relevant regulations."
Write to Ulrike Dauer at Ulrike.Dauer@dowjones.com and Max
Bernhard at Max.Bernhard@dowjones.com; @mxbernhard
(END) Dow Jones Newswires
November 06, 2017 09:40 ET (14:40 GMT)
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