BMW is being investigated by BaWe, the German stock market regulator, concerning possible insider trading during the sale of its Rover business.
LONDON (Brand Republic) – BMW is being investigated by BaWe, the German stock market regulator, concerning possible insider trading during the sale of its Rover business.
The investigation is thought to have been prompted by wide fluctuations in the German carmakers’ share price during the early days of the Rover sale.
The share price began to soar at the beginning of the week of the March 16 board meeting that agreed the sale of its British subsidiary. A German newspaper revealed news of Rover’s disposal two days before the meeting. The share price opened that week at €26.80 (£16) and topped €31.70 (£19) on the day of the announcement.
The inquiry will look into BMW’s conduct during the sale of Land Rover to Ford. BMW may have breached the “ad-hoc publicity law” which stipulates that companies must publicise share-sensitive information to the stock market as soon as possible. Ford is said to have decided to buy Land Rover at midnight on March 16 but the German car group did not hold a press conference until mid-morning.
The investigations have been ongoing for several months and are expected to continue for some weeks.
The company is also facing legal action from 190 Rover car dealers, who are claiming that BMW misled them when they first invested in Rover. The lawsuit is to be filed during the next two weeks.