Officials from Germany’s Federal Authority for Securities trading are investigating allegations that SAP AG executives, relatives and associates sold stock before the company issued a sales warning last year. Shares tumbled last October after the company issued a warning on October 23rd (CI No 3,027). saying it would only make $2.3bn of business for the year, rather than the $2.5bn it had hoped for, and that profits for the first nine months of the year would be below expectations. Trading is said to have been very active two weeks prior to the warning. Ironically, SAP’s eventual results showed the 40% growth in profits it originally forecast rather than the revised 30% figure it came up with in October, its only explanation being that the planned currency union and the turn of the century have increased interest in our products worldwide (CI No 3,091). Reports have suggested that the investigation might reveal the most serious case of insider trading since Germany introduced trading laws four years ago, with up to 100 individuals thought to be under investigation. SAP said it would cooperate with the enquiry, and a statement from SAP chief executive officer, Dietmar Hopp, is expected today. Share prices dropped on the news, but later recovered.
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