Drillisch accuses DT executive of market manipulation

29 Nov 2011

German mobile services provider Drillisch has asked public prosecutors to investigate alleged stock market manipulation by a Deutsche Telekom (DT) executive, Reuters reports. The accusation comes after DT ended its cooperation with Drillisch earlier this month, on the suspicion that the company committed fraud regarding commission fees, and filed criminal charges against the service provider. In a statement on its website, DT said it suspected that Drillisch subsidiary Simply Communications, which sells pre-paid mobile services provided over DT’s network, has activated tens of thousands of mobile phone lines, without actually having sold the contracts to customers – claims that were rejected by Drillisch. In the latest development, a spokesman for the Public Prosecutor’s Office in Hanau has told Reuters it received a complaint from Drillisch, accusing DT board member Manfred Balz of market manipulation, and that it has referred the case to prosecutors in Frankfurt, which would automatically trigger an investigation. ‘The allegation of fraud against key players of Drillisch, spread by Dr. Balz on 7 November 2011 and the subsequent slump in the share prices of Drillisch, provides grounds for the suspicion that Dr. Balz and other persons in charge at Deutsche Telekom have violated the prohibition of market manipulation,’ Drillisch said, citing Hanau prosecutors. A spokesperson for DT said the company rejected Drillisch’s claims and that it stood by its fraud accusations.

Germany, 1&1 Drillisch, Deutsche Telekom (DT)