Gretag has countered allegations of insider trading in the run-up to the sale of its Professional Imaging division to Oc, by disclosing all transactions in its shares during 2001 by its three founding shareholders.

Kurt Mnger, Gretags head of corporate communications and investor relations, said several media articles, including one in Swiss newspaper Sonntagszeitung, had published allegations that a rise in Gretags share price had led to a suspicion of insider trading.

Gretag subsequently asked the newspaper editors to disclose its information, but said no "satisfactory" answer was supplied.

One article had referred to a "reliable source" and levelled the allegation at "a person at the highest level of management".

Gretag said it was in its own interests to investigate any illicit actions.

But Mnger said Gretag didnt plan to take any legal action against the newspapers concerned.

Gretag Imagings share price went on a sudden run in November. It started the month at under 2.50 (E4), but had risen to more than 5.30 by the middle of the month. It has now fallen back to less than 4.70 on the Stuttgart exchange.

The price has slumped during the past 12 months from a high of 112.

Of the three founding shareholders, Dr Hans-Rudolf Zulliger made his last transaction in Gretag shares on 9 August 2001, while Dr Eduard Brunner made his final buy on 6 September. William J Recker last bought shares on 31 August.

Oc paid an undisclosed sum for the Professional Imaging division, which has revenues of more than 70m, earlier this month (PrintWeek, 16 November).

Story by Gordon Carson