German financial markets regulator BaFin said Friday it had imposed a fine on carmaker DaimlerChrysler for a delay in announcing the early departure of a chief executive.
BaFin said in Bonn that the Stuttgart-based company had given notice of appeal to a Frankfurt court. BaFin did not disclose the scale of the fine, but newspaper Handelsblatt said it was in six-figure euros, meaning between €100,000 and €1 million ($136,000 and $1.36 million).
DaimlerChrysler’s supervisory board announced July 28, 2005 that much criticized CEO Juergen Schrempp would leave early and the share price promptly bounded higher. Shareholders complained that senior management knew in advance and had the opportunity to buy the shares while they were still cheap. The BaFin spokeswoman said regulators believed the ad-hoc statement for financial markets went out too late.
In Frankfurt, court officials said they had not received appeal papers yet. Shareholders who claimed damages in a Stuttgart court for the alleged delay lost their case in February. Dieter Zetsche formally took over from Schrempp as CEO of DaimlerChrysler at the start of 2006. (m&c.com)