RWE suspects market manipulation

14th May 2007, Comments 0 comments

BERLIN, May 14, 2007 (AFP) - German energy giant RWE has asked the German financial authorities to look into the recent rise in its share price, a company spokeswoman said on Monday, suggesting that it could be a result of market manipulation.

BERLIN, May 14, 2007 (AFP) - German energy giant RWE has asked the German financial authorities to look into the recent rise in its share price, a company spokeswoman said on Monday, suggesting that it could be a result of market manipulation.

RWE's shares rose sharply last week, ostensibly on the back of rumours of a possible tie-up with French rival EDF.

But the German power giant believes such rumours may have been spread deliberately to push up the share price and has asked the financial sector watchdog, BaFin, to look into the matter, the spokeswoman said.

"We can't rule out share price manipulation," she said. "We think the rumour was spread deliberately," she added, saying that a letter would be sent to BaFin on Monday.

The authorities will decide whether to pursue the matter on receipt of the letter.

RWE shares soared by nearly seven percent last Friday amid rumours of a possible takeover by EDF, which was reported to have established contact with the German government on the matter. The rumours were firmly denied, however, by EDF, RWE and the German chancellor's office.


Copyright AFP

Subject: French news

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