Air Berlin execs under investigation for insider trading

[White Cap]

Source: ATW Daily

Air Berlin execs under investigation for insider trading
Wednesday June 20, 2007

Air Berlin acknowledged yesterday that police and Federal Financial Supervisory Authority officials searched the offices and homes of six individuals accused of insider training, including CEO Joachim Hunold and Chairman Johannes Zurnieden.

The airline said it "dismisses the allegations." The individuals in question are accused of purchasing €1.5 million ($2 million) in AB shares prior to last summer's announcement of the airline's acquisition of German rival dba (ATWOnline, Aug. 18, 2006). "It is maintained [by accusers] that this was sufficient to have a significant positive influence on the share price," AB said.

Hunold said the carrier is cooperating with investigators but emphasized, "Up until the eve of conclusion, the deal [to acquire dba] was uncertain." A confidentiality agreement between the two airlines was reached on May 26, 2006, at which point AB said that a "purchase of dba was considered highly unlikely."

Negotiations did not begin until July 15 and AB signed an LOI to purchase dba two days later. "It was at this point that the respective employees of Air Berlin became subject to the insider rules," the carrier said.

"Whether and to what extent Air Berlin's share price would increase following the publication of the dba acquisition was more than unknown," Hunold said, adding that his share purchase was investigated last autumn and FFSA "raised no objections." Bloomberg News reported that Hunold bought AB shares worth approximately €471,000 during the May 26-July 15 period and Zurnieden €1.03 million.

Hunold claimed he purchased his shares that June "simply because at this point the lock-up period imposed by the stock market regulations came to an end and I wanted to send a positive signal to the market."


by Brian Straus

[Martin]

Nick, have a look here http://www.nrn-forum.net/viewtopic.php?t=5190

[White Cap]

Nick, have a look here http://www.nrn-forum.net/viewtopic.php?t=5190

@Martin

Ops

Cheers,
Nick