German Authorities Probe Fraud Allegations at EM.TV

07 December 2000

Düsseldorf-headquartered EM.TV, in whose troubled affairs Kirch Gruppe intervened earlier this week [WAMN: 4-Dec-00], is again under the spotlight as investigators from Munich's Department of Public Prosecution and Germany's bourse regulatory authority start to probe allegations of investor fraud and withholding of information.

Inquiries by Munich’s senior public prosecutor are targeting EM.TV chairman Thomas Haffa and other members of the group’s management and supervisory boards.

At the same time, bourse regulators are examining recent unusual movements in EM.TV’s share price. Especial interest is being shown in the vigorous share trading that occurred last Friday prior to the group’s issue of a profit warning.

It was immediately following the warning that Kirch agreed to acquire a 25% plus stake in EM.TV, a holding that also includes a slice of EM.TV’s 50% stake in the world’s dominant motorsport business, Formula One.

News source: Handelsblatt (Germany)