Zalando plunges after German regulator opens accounting review
Germany’s financial regulator is reviewing a disclosure tied to the About You takeover. Zalando says it is formal and not material. The market disagreed, briefly.
It took one regulatory headline to wipe a fifth off Zalando’s value. Shares in the German online fashion retailer fell as much as 20% in Tradegate premarket trading on Friday after BaFin, the country’s financial regulator, said it had opened a review of the group’s consolidated accounts.
By the time Xetra opened, the loss had narrowed to just over nine percent, with the stock around €24.15 and sitting at the bottom of the DAX.
BaFin’s statement was narrow but pointed. The regulator said it had specific indications that Zalando may have breached accounting rules in its consolidated financial statements and the related management report.
In the language of German securities supervision, that is enough to trigger a formal examination, and a formal examination is enough...
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