VNA Vonovia SE

By Ed Frankl

Vonovia SE shares fell in Tuesday trading after German prosecutors raided offices of the real-estate company investigating allegations of kickbacks given to employees in the awarding of contracts.

At 1425 GMT, shares were down 6.6% to EUR224.

Vonovia said public prosecutors had looked into company documents on suspicion that individual employees had engaged in problematic practices over the awarding of contracts to subcontractors.

The public prosecutor's office in Bochum, where Vonovia is based, confirmed to Dow Jones Newswires that it is conducting an investigation against several former employees into criminal acts to the detriment of two housing companies based in Bochum and southern Germany.

The employees were alleged to have favored several companies in contracts awarded by Vonovia and to have received money or benefits in return, according to the prosecutors.

Contracts were also allegedly manipulated to allow commissioned companies to overbill, they added.

Vonovia, which called itself an aggrieved party in the case, said it is cooperating fully and granted authorities access to the necessary documents.

"We are very interested in a quick and comprehensive clarification of the allegations," the company added.

Write to Ed Frankl at edward.frankl@wsj.com

(END) Dow Jones Newswires

March 07, 2023 09:57 ET (14:57 GMT)

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