Daily Management Review

Collapse of Hugo Boss' shares grabbed attention of watchdogs


10/16/2017


Following a long drawn-out investigation, the Federal Office of Financial Control of Germany (BaFin) submitted to the Stuttgart prosecutor's office a case of possible insider trading of shares of the German fashion manufacturer Hugo Boss.



Tokumeigakarinoaoshima
Tokumeigakarinoaoshima
On February 23, 2016, Hugo Boss securities collapsed in Frankfurt by 20% to 56 euros. This was the worst fall since October 2008. Shortly before, the company published a document saying that its profit in 2016 will fall by at least 10% due to lower than expected sales in the US and China.

According to SPIEGEL’s information, this case was not without individual insiders, who had time to secure in advance. It is reported that shortly before the publication of the forecast of the fall in financial indicators of Hugo Boss, they managed to sell a considerable number of shares held by them at a still good price. The names of the individuals against whom the investigation was conducted are neither reported by the German Federal Financial Supervisory Authority nor by the prosecutor's office.

As SPIEGEL writes, there are assumptions that one of the members of the supervisory board of Hugo Boss conveyed to interested parties information about the forthcoming fall of the group's profit even before its publication. In particular, it’s a hint at a man named Luca Marzotto. The entrepreneurial family of Marzotto owned the fashion house from 1991 to 2007. Now they own a 10% stake in Hugo Boss. The family is the largest single shareholder in the company's supervisory board. It is reported that, Marzotto helped one of the relatives be in time to have time to sell the securities at a bargain price.

Luca Marzotto himself states that he did not violate any laws and he knows nothing about the fact that he is suspected of participating in the insider trading deal of Hugo Boss shares.

source: spiegel.de






Science & Technology

Smartphone makers will pay for pre-installing Google apps‍

Five loudest data leaks

Airbus announces Moon exploration competition

Former Head Of Google China Thinks Funding In AI Should Be Doubled By US

Germany Introduces The First Ever Train To Run On 100% Hydrogen

Germany Plans On Cyber Security Research To End Reliance On U.S. Tech

Fuchsia will kill Android by 2023: Top 5 facts about the new OS

New Study Finds Goats Interact More With Happy People

More than 32 thousand "smart" houses under threat of hacker attack

Internet addiction and children: Global plague

World Politics

World & Politics

Turkish President and CIA set to find Khashoggi's murderer

Saudi Explanation Of Khashoggi’s Death Criticised Internationally

Cyprus Cobalt Air stopped flights

Transparency International: Europe should stop selling citizenships

Turkey: We are not going to discuss borrowing from IMF anymore

Trump in your mobile phone: US is going to test Presidential Alert system

European automakers warn of consequences of tight emission controls

IATA: EU-UK flights can be cancelled due to Brexit disagreements