ZF English

BMW faces probe into possible insider trading

11.08.2000, 00:00 14



German regulatory authorities are investigating possible insider trading and other breaches of German financial regulations at BMW, the German carmaker, when it sold Rover.

News of the probe rekindled UK unions' and opposition MPs' anger over the sale earlier this year. The German Federal Securities Supervisory Office said its investigation was still at an early stage and it remained unclear whether it would lead to a court proceedings. "Everything is entirely open and we could still halt the examination internally," it said.

The regulator is investigating whether wild fluctuations in the BMW share price ahead of the March 16 board meeting that agreed the disposal of Rover were the result of insider trading by BMW employees.

It is also examining whether the board had already decided on disposal ahead of that meeting. A German newspaper had reported two days earlier that Rover was to be sold.

Finally, it is examining whether BMW breached the so-called "ad-hoc publicity law" in the sale of Land Rover to Ford.

BMW held a mid-morning press conference on March 16 to unveil the Land Rover deal, while Ford's board had decided on the purchase at midnight. According to the law, companies are obliged to publicise share-sensitive information to the stock market as soon as possible.

The GMB union said it "beggared belief" that BMW executives and employees might have made money at the expense of the misery of thousands of Rover employees. The Conservatives said the investigation proved the government was "asleep at the wheel." Ministers said at the time they were unaware BMW was poised to sell off the loss-making Rover until they read it in the press.

After owning Rover for six years and losing L2m a day, BMW in May sold most of the business to Phoenix, a UK consortium, for a symbolic L10. An earlier bid from venture capitalist Alchemy fell through following a row over liabilities. Reuters

Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels

AFACERI DE LA ZERO