Balda AG fell the most in almost a year in Frankfurt trading after the supervisory board of the German plastic-parts maker dismissed its chief executive officer and ordered an investigation into U.S. acquisitions.
Balda dropped as much as 14 percent to 4.41 euros, its biggest intraday decline since Nov. 8. Trading volume was more than double the three-month daily average. CEO Dominik Mueser has been stripped of his duties yesterday, the Bad Oeynhausen-based company said in a statement late yesterday.
The supervisory board has ordered an examination of the circumstances surrounding the acquisition of the plastic components maker’s U.S. units and other transactions, Balda said, without giving details. Balda bought U.S. plastics producers C. Brewer Co. and HK Plastics Engineering Inc. for a combined $50 million in December.
Frank Elsner, spokesman for Balda, didn’t return two calls seeking comment.
The stock was down 6.5 percent at 4.79 euros as of 10:54 a.m. local time. Shares have gained 43 percent this year, giving the company a market value of 283 million euros ($384 million).
Oliver Oechsle was appointed as an additional member of the management board, the company said in the statement.
Publication of the financial statements for the fiscal year through June has been delayed because figures from the U.S. units, acquired in December, were late, Balda said. The annual shareholder meeting will be postponed to December or possibly as late as early 2014.