French watchdog fines Rallye, its CEO for market manipulation

(Reuters) -France's financial watchdog AMF has fined the holding company Rallye and its chief executive Franck Hattab for market manipulation, it said on Monday.

AMF issued a fine of 25 million euros against the holding company, which is the parent of the troubled supermarket chain Casino, and a 1 million euro fine against the CEO.

AMF in a statement said Rallye and Hattab had disseminated false or misleading information about the company's financial situation on eleven occasions between March 2018 and May 2019.

AMF said Rallye "gave investors a more favourable image of its liquidity situation than what existed," it added.

That likely influenced market perception and set its stock at an artificial level, AMF said.

Casino is currently undergoing a restructuring process through court mediation, which will result in Czech billionaire Daniel Kretinsky taking over Casino and its 6.4 billion euros ($6.94 billion) debt being restructured.

(Reporting by PierreJohn Felcenloben; editing by David Evans and Deepa Babington)