Wirkard shares fell at the end of Friday’s trading session, to the lowest level in more than two years today, Friday, after a Dubai-based business partner closed its doors, even though the German payments company played down its impact on operations.
The stock fell 7.6%, to be the biggest loser on the German leading stock index, DAX 30.
The shares were lowered after a tweet that indicated a May 11 liquidation notice in the Dubai Today newspaper from Dubai-based Al Alam. A newspaper employee confirmed that the notice had been published in its printed version, according to Reuters.
El-Alam is one of WireCard’s network engineering partners for payments.
A Wirecard spokeswoman said the company was aware of the closure and said it would not affect its ability to manage operations, as it had reduced its reliance on third-party partners.
The move comes after allegations from the Financial Times regarding accounting irregularities and disclosure violations by Aircard, some of which include foreign subsidiaries and third-party business partners.
Wirecard has repeatedly denied the allegations. The flag was one of the companies that the Financial Times listed as a third-party trading partner.
“The flag will have a response to the destruction of its reputation by publicly questioning its integrity,” said a statement sent to E-mail.