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Steinkuhler quits top post at IG Metall

John Eisenhammer
Tuesday 25 May 1993 23:02 BST
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FRANZ STEINKUHLER's six years of flamboyant leadership of Germany's most powerful trade union ended in disgrace yesterday as he resigned amid accusations of insider trading and exorbitant stock market speculation.

'I am going at a difficult time for IG Metall, and one which will probably get even harder because of my mistakes,' the 56-year-old Mr Steinkuhler said in a statement read out for him at the union's headquarters.

A Wickert Institute opinion poll yesterday showed 81 per cent of unionists wanted Mr Steinkuhler to go. Their indictment followed press revelations that he had bought DM1m ( pounds 400m) of Mercedes Holdings shares shortly before the company was absorbed back into its parent, Daimler- Benz. Mr Steinkuhler, who sits on Daimler's supervisory board, also admitted buying DM10,000 of Fokker shares shortly before Daimler took it over.

Press reports now put at DM160,000 the profit made by Mr Steinkuhler from his share dealings in Mercedes and Fokker. The timing and size of the deals fuelled accusations that he had benefited from inside information before making the purchases. In his resignation statement, he said he would personally have tried to stand up against the accusations, but could not inflict the derision and controversy on his wife and 12-year-old son.

Mr Steinkuhler's deputy, Klaus Zwickel, is to take over running IG Metall until a new president can be elected in the autumn.

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