The head of the DaimlerChrysler supervisory board, Hilmar Kopper, is reported to be facing investigations by German legal authorities and by the financial sector regulator BaFin amid allegations of violation of regulations on insider information, according to the Financial Times Deutschland.
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Kopper is reported to have been accused of having informed the banking group Deutsche Bank of the planned departure of DaimlerChrysler head Jurgen Schrempp before the public was informed, thereby enabling the bank to carry out a lucrative share sale.
The newspaper said the investigation follows the sale of 35 million DaimlerChrysler shares by Deutsche Bank on 28 July 2005, shortly after Schrempp had announced his resignation. The bank had previously said that it was planning to sell the share package at an appropriate price, and a book loss would have been shown at a price below EUR38.50 per share. The price was boosted to as much as EUR40.40 by news of Schrempp’s planned departure.
Deutsche Bank has declined to comment, the Financial Times Deutschland said, noting that Hilmar Kopper was formerly the chairman of the management board of the bank, and subsequently, until May 2002, chaired the bank’s supervisory board.
