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By
Reuters
Published
Jun 12, 2009
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German prosecutors probe ex-Arcandor CEO Middelhoff

By
Reuters
Published
Jun 12, 2009


Thomas Middelhoff

DUSSELDORF, Germany, June 12 (Reuters) - German prosecutors have opened a probe into possible breach of trust by former Arcandor (AROG.DE) Chief Executive Thomas Middelhoff.

"We have decided to launch an investigation after examining documents one more time," senior prosecutor Angelika Matthiesen told Reuters on Friday 12 June.

Middelhoff headed the German retailer, which filed for insolvency this week, from 2005 to March this year. Shareholders have in the past criticised his holdings in a real estate fund that owns some of Arcandor's department stores.

A spokesman for Middelhoff said the manager welcomed the probe, which he hoped would thwart the allegations.

The German government let Arcandor slide into insolvency on Tuesday 9 June by denying its requests for state aid, putting about 43,000 jobs at the retailer at risk.

Arcandor shares were up 11.4 percent at 0.78 euros by 1213 GMT, having fallen about 63 percent in the past five trading days. (Reporting by Matthias Inverardi; Editing by Hans Peters)

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