View the article online at http://citywire.co.uk/money/article/a1010198
Borussia Dortmund bombing was attempted market manipulation
German police have charged a man over bomb attack on football team Borussia Dortmund, accusing him of trying to force down its share price.
German police have charged a short-seller over the bomb attack on football team Borussia Dortmund earlier this month, saying he hoped to profit from a slump in its share price.
The attack on 11 April left two people in need of medical help and Spanish defender Marc Bartra in need of surgery for a broken arm after three bombs were detonated near the Borussia Dortmund bus.
A 28-year-old suspect, identified only as Sergej W, took out 15,000 put options on the stock ahead of the attack, reportedly valued at €78,000 (£65,000). This is believed to have been in the hope that the shares would plunge following the attack and he could sell them at a higher price at a profit.
Police had earlier linked the bombs to Islamic militants, following the discovery of letters close to the scene of the attack claiming a connection to the Islamic State.
Shares in the tightly-held club fell from €5.68 to €5.55 in the immediate aftermath, but rapidly recovered, before sliding to below $5.40 after the team was later knocked out of the UEFA Champions League.
The trade was traced to a computer used at the L'Arrivée hotel used by the club, where the suspect had also been staying at the same time
In a joint statement, Borussia Dortmund chief executive Hans-Joachim Watzke and president Dr Reinhard Rauball said: ‘We are grateful for the fact that in the suspect the responsible person for the humiliating attack on our players and staff members could be taken.’
A scheduled match against Monaco was cancelled following the attack and the local stadium evacuated. Local fans opened their doors to stranded travelling supporters until the match was reconvened the following night.
The German Federal Prosector is to hold a press conference on the case later today.
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