FRANKFURT (Reuters) - German classifieds group Scout24 G24n.DE can cope with a higher long-term leverage ratio of up to 3.5 times core earnings to fund greater capital return to shareholders, CEO Tobias Hartmann said on Tuesday.

The increase in long-term leverage acknowledges a call by U.S. activist investment fund Elliott to return more capital to shareholders than a 300 million euros ($337 million) buyback proposed by management.