Prosecutors open inquiry against DaimlerChrysler

19th January 2006, Comments 0 comments

19 January 2006, FRANKFURT - German prosecutors said Thursday they have opened an inquiry against Hilmar Kopper, who heads the supervisory board of DaimlerChrysler, over allegations that he passed information to Deutsche Bank just before the carmaker's stock soared.

19 January 2006

FRANKFURT - German prosecutors said Thursday they have opened an inquiry against Hilmar Kopper, who heads the supervisory board of DaimlerChrysler, over allegations that he passed information to Deutsche Bank just before the carmaker's stock soared.

Financial markets enthusiastically welcomed last year's premature departure of DaimlerChrysler chief executive Juergen Schrempp, who was seen by many analysts as a liability. It later emerged that an inner circle knew that Schrempp was leaving before it was announced.

Prosecutors in Stuttgart, where DaimlerChrysler is based, confirmed that an inquiry had begun against Kopper, who is a former chief executive of Deutsche Bank and sits on many corporate boards.

They said the inquiry might be taken over by prosecutors in Frankfurt, where the bank has its headquarters.

The inquiry is to establish whether Kopper breached laws on communicating "insider information" to those who could profit by alterations in share prices.

A newspaper, the Stuttgarter Zeitung, said the inquiry was triggered by findings of BaFin, the German financial regulator.

Kopper allegedly spoke of the resignation to Deutsche Bank chief executive Josef Ackermann before the July 28, 2005 announcement, which sent the stock 10 per cent higher.

Deutsche Bank sold 3.5 per cent of shares in the automotive company that day in a deal with a reported volume of 1.4 billion euros. It still holds 6.9 per cent of the automaker.

DPA

Subject: German news

0 Comments To This Article