Regulators on Wednesday said they had opened a formal investigation into possible insider trading in shares of DaimlerChrysler AG after finding “grounds” to suspect illegal dealing in the automaker’s stock, the Associated Press (AP) reported.
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AP said Germany’s financial-services watchdog, BaFin, ran a routine check after DaimlerChrysler’s stock jumped just before last month’s announcement that chief executive Juergen Schrempp would resign.
BaFin spokeswoman Sabine Reimer told the news agency the regulator had opened a formal investigation after the routine probe found “grounds for possible illegal trades” just before the announcement, but the probe had yet to identify particular suspects.
“We are asking all financial institutions to show us who bought or sold shares. Then we’ll try to find links to people who knew of Schrempp’s plans,” Reimer reportedly said. The investigation would likely take several weeks, she added.
The Associated Press said stock in the automaker opened around €36.50 on July 28, but began rising on reports that Schrempp was about to step down. By the time an official announcement was made after 10:30 am, it was at about €39.35— a gain of nearly 8% — and closed the day more than 10% higher.
AP noted that the company named Dieter Zetsche, 52, who led the resurgence of Chrysler, to replace Schrempp at the beginning of next year.
