German prosecutors have dropped their investigation into allegations of insider trading at Air Berlin, clearing chief executive Joachim Hunold and chairman Johannes Zurnieden as well as three other senior executives.
The inquiry by the public prosecutor of Stuttgart began more than a year ago and related to the acquisition of Air Berlin shares ahead of the carrier’s disclosure that it planned to acquire Munich-based budget airline DBA.
But Air Berlin says that the investigation has been dropped through lack of evidence. Hunold has rejected any suggestion of wrongdoing by the carrier’s management team.
Air Berlin revealed its intention to take over DBA on 17 August 2006. The prosecutor had claimed that six individuals were linked with a €1.5 million ($2.3 million) purchase of Air Berlin shares before the information was made public.
Hunold had purchased €471,000 worth of shares in the first week of June 2006 while Zurnieden bought over €1 million worth between 3-17 July in the same year. Three other executives bought smaller share packages.
Air Berlin had said the share purchases were properly notified and that the transactions were intended “to make a public statement of confidence” in the airline following a drop in the share price.
But the prosecutor started an inquiry after a six individual, a contractor in Stuttgart, apparently boasted of receiving inside information from the airline.
Air Berlin insists that the share purchase was not based on the assumption of a successful DBA acquisition. The airline says negotiations had “been on the verge of breaking down numerous times” and that the company was “by no means sure” that the takeover would proceed or that the share price would increase as a result.
Hunold and Zurnieden, the carrier points out, still hold the shares they bought at the time.
Air Berlin adds that the Stuttgart contractor was found to be “not privy” to any insider information. Hunold says the investigation has been “extremely stressful” and states that he is “relieved” that the inquiry is over.
Source: flightglobal.com's sister premium news site Air Transport Intelligence news
Source: Flight International
