Wirecard to Exit DAX Index With Delivery Hero Standing By
Deutsche Boerse AG will remove Wirecard AG from its benchmark DAX index ahead of a regular quarterly reviewfollowing the collapse of the payments company amid allegations of accounting fraud.
The decision was taken following consultations with market
participants conducted after Wirecard declared insolvency in June. The results
favored immediate removal of bankrupt companies from the index, rather than
waiting for the review.
Delivery Hero AG is seen as the most likely candidate to
take the spot among Germany’s most valuable companies, according to the latest
index ranking list.
“According to the new rules, insolvent companies shall be
removed from the DAX Selection Indices with two trading days’ notice,” Deutsche
Boerse said in a statement late Wednesday. Wirecard’s successor will be
announced on Aug. 19, with the changes taking effect from Aug. 24.
Delivery Hero’s stock hit a record high in July as
virus-induced lockdowns sparked increased demand for its food delivery
services. The possibility of the company joining the DAX is seen as
controversial among some market participants, as it has yet to report an annual
profit. That raises questions about the suitability and sustainability of
including it alongside heavyweights such as Siemens AG and SAP SE.
Irrespective of the current change in the rules for dealing
with insolvent companies, an in-depth review of the DAX rules will be
conducted, Deutsche Boerse said. For this purpose, another extensive market
consultation will be launched, with results expected by the end of the year.
Wirecard filed for insolvency after admitting that almost 2
billion euros ($2.4 billion) in previously reported cash didn’t exist. The
scandal has continued to widen and threatens to engulf top politicians,
regulators and auditors.
In the latest twist, German federal police on Wednesday
launched a manhunt for Wirecard’s former chief operating officer Jan Marsalek.
Marsalek was also added to Interpol’s wanted list.
Separately, Philippine investigators recommended that two
immigration officers be charged for allegedly falsifying Marsalek’s travel
records.
Immigration records on his supposed arrival and departure on
June 23 and 24 respectively were “both spurious” and were made “in order to
divert the attention of authorities in Europe to focus attention in the
Philippines,” the National Bureau of Investigation said.
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