BERLIN (Reuters) - The chief executive of German property company TAG Immobilien (GER:TEG) expanded his private real estate investments last month after pledging to transfer all such activities to a trustee by the end of the year, Welt am Sonntag reported.
TAG Immobilien CEO Rolf Elgeti commissioned a 3.7 million euro ($4.99 million) purchase of a department store in eastern Germany on October 18, two days after he vowed to transfer his assets to a trustee, the weekly said, providing no source.
Welt am Sonntag reported on October 6 that Elgeti had demonstrated poor judgement in some of his own property transactions and that the company had overpaid on other deals, sending shares as much as 12 percent lower.
The newspaper said Elgeti's private investments in various companies buying and managing real estate constituted a conflict of interest with TAG, citing specifically the purchase of a high-rise in the northern German city of Rostock by a company in which Elgeti holds a stake.
Elgeti said his latest purchase followed almost two years of negotiations and did not contradict his assurance of October 16 to continue to give priority to TAG shareholders, tenants and staff, according to Welt am Sonntag.
TAG Immobilien, a German midcap, said last week it would commission an external review to dispel the allegations made by the paper and expressed its support for the CEO.
(Reporting by Andreas Cremer, editing by Gareth Jones)
- Mergers, Acquisitions & Takeovers
- Welt am Sonntag