TAG Falls on Report CEO Owns Stakes in Rivals: Frankfurt Mover
TAG Immobilien AG (TEG) declined the most since June 2012 in Frankfurt trading after Welt am Sonntag newspaper reported that Chief Executive Officer Rolf Elgeti owns stakes in about 20 companies that buy and manage real estate like the company he heads.
The shares were down 4.2 percent at 8.85 euros at the 5:30 p.m. close, the biggest decline among stocks in Germany’s DAX Mid-Cap Index. Elgeti also bought commercial properties himself, Welt am Sonntag said yesterday. Most of the deals were done before Elgeti joined TAG, the newspaper said.
Elgeti became CEO in July 2009 after joining the supervisory board the previous year and his contract was extended through 2017 last year. The board was told about all the transactions Elgeti made outside TAG and cleared them, Elgeti said in an e-mail to Bloomberg.
“There are no conflicts of interest,” he said. “It is no secret that I hold personal real estate investments dating from my time prior to joining TAG.”
TAG has a market value of about 1.2 billion euros ($1.6 billion).
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