AN INSIDER trading inquiry added to the woes of DaimlerChrysler, the auto manufacturer which stunned the financial markets last week by announcing the resignation of its chief executive, Jürgen Schrempp.

BaFin, the German financial services regulator, yesterday said it had opened an investigation into possible insider trading in DaimlerChrysler shares. The regulator is focusing on stock market dealing in the company’s shares before the announcement of its chief’s decision to retire.

Sabine Reimer, a spokeswoman for BaFin, which is based in Berlin, said that the inquiry was not limited to specific people or trades.

“We’re looking into all the deals,” she said, adding that the agency is making sure the company followed the guidelines for its obligations under stock exchange disclosure requirements, or ad hoc rules.

DaimlerChrysler shares opened at near €36.50 on July 28, but began to rise on rumours that Herr Schrempp was going to quit. By the time an official announcement was made after 10.30am, the stock had risen to €39.35 a share, eventually surging more than 10 per cent that day before closing at €39.49. News of the inquiry pushed the auto company’s stock down 0.6 per cent to €41.27 yesterday.

The company named Dieter Zetsche, 52, who led the recovery at the company’s American Chrysler auto manufacturing business, to replace Herr Schrempp at the start of 2006.

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