SWX: Sanctions Against Charles Vögele Holding AG

During the course of Monday, 4 December 2000, Charles Vögele Holding AG (CV) became aware that it could no longer achieve its previously announced earnings targets for the 2000 financial year. CV publicly issued a related profit warning during the course of Tuesday morning, 5 December 2000. Furthermore, in the week preceding publication of that profit warning, CV, within the framework of its normal contact with analysts, provided several representatives of financial institutions with the information that October/November 2000 revenues were likely to come in lower than expectations; group profit estimates were not addressed in the aforementioned conversations.

The committee of the SWX Admission Board, in its decision of 31 May 2001, therefore issued a reprimand to CV for violation of the duty to disclose price-relevant facts within the context of Art. 72 of the SWX Listing Rules. In the opinion of the Admission Board committee, the profit warning of 5 December 2000 represents a violation of the obligation to disclose information without delay as per Art. 72 para. 2 LR; furthermore, the selective disclosure of revenue details to only a limited number of individuals (analysts) in the week prior to the profit warning violated the rule pertaining to equal treatment of all market participants (Art. 72 para. 4 LR). In a petition dated 3 September 2001, CV lodged an appeal of this decision with the Disciplinary Commission of the SWX Swiss Exchange. On 3 December 2001, CV withdrew its appeal. Consequently, legal force has now accrued to the decision of the Admission Board committee.