It just gets worse and worse...

REGULATORS of the Frankfurt Stock Exchange say that they have begun looking at whether to launch a formal investigation into share trading surrounding EM.TV. A spokesman for the Bundes Aufsichts Amt - the state investigation service - says that it is looking at movements of the company's shares prior to the profit warning it issued last week. They say that so far they have found no evidence of insider trading but if they have suspicions they will then ask banks to identify investors who bought and sold before the announcement that the company's expected earnings were going to be about $23m rather than the $237m which had been forecast.

German shareholder protection groups said they were considering legal action against EM.TV because the profit warning came only a few weeks after the firm announced that everything was on target to meet expected earnings.

EM.TV ended Wednesday trading down another 30% in the day at 6.25 Euros ($5.30).

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