Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Borussia Dortmund bombing was attempted market manipulation

1 Comment
Borussia Dortmund bombing was attempted market manipulation

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.  

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Liontrust ESG head says sustainable investment doesn't mean low return

Liontrust ESG head says sustainable investment doesn't mean low return

Peter Michaelis talks about ethical investment growth and where he sees future opportunites.

Play Are platforms the biggest barrier to wealth manager ETF take-up?

Are platforms the biggest barrier to wealth manager ETF take-up?

Citywire hosted a roundtable discussion to find out how and if wealth managers are using ETFs in their clients' portfolios and the challenges they face trading through different platforms.

Play SVM's Veitch on what's next for banks

SVM's Veitch on what's next for banks

SVM fund manager Neil Veitch is finding value in what he describes as unstable financials and talks through his favourite small caps.

Read More
Your Business: Cover Star Club

Profile: Affinity’s Julia Warrander on the importance of diversity

1 Comment Profile: Affinity’s Julia Warrander on the importance of diversity

'Sometimes there are 10, sometimes 20 people around a table and, more often than not, I’m the only woman,' says the Affinity Wealth co-chief investment officer

Wealth Manager on Twitter