German landlord Adler asks KPMG to extend special audit

FRANKFURT (Reuters) - German landlord Adler Group on Thursday said KPMG had not refuted all the claims a short seller had made against it and it had asked the accountancy firm to extend a special audit it is carrying out.

Adler has rejected the allegations.

Adler said on Thursday KPMG had provided the company with an interim status of its review of allegations by short seller Fraser Perring's Viceroy Research.

Viceroy Research, in a report published on Oct. 6, 2021, said Adler Group's "balance sheet has been artificially inflated to a significant degree, its shares are not investible", causing the group's shares to fall 26%.

"KPMG is not able to refute the allegations made regarding the transaction with and influence on Adler by alleged related parties due to currently available data," Adler said in a statement.

"The allegations regarding the development portfolio have only been partially refuted to date. Value differences in the development portfolio are currently being jointly reviewed further."

Adler said it had asked KPMG to extend the investigation until March 25. German financial watchdog BaFin last month said it was examining the firm's financial reports.

(Reporting by Christoph Steitz; editing by Barbara Lewis)