Categories: Business

FBI to investigate Heinz share trades ahead of takeover

The FBI is joining an investigation into suspicious trades ahead of the Heinz takeover deal last week.

The US financial regulator, the Securities and Exchange Commission (SEC), is already suing unnamed traders for insider dealing.

Last Thursday, Heinz was bought for $23 billion by Warren Buffett’s Berkshire Hathaway fund and 3G Capital.

Unusual trading activity in the shares was noticed the previous day.

“The FBI is aware of trading anomalies the day before Heinz’s announcement” a spokesman said.

“The FBI is consulting with the SEC to determine if a crime was committed.”

The FBI is joining an investigation into suspicious trades ahead of the Heinz takeover deal last week

The SEC believes that some traders knew about the takeover before it was announced and made $1.7 million from the knowledge. It obtained an emergency court order to freeze assets in a Swiss-based account.

The traders in question made risky bets that Heinz’s stock price would increase, using financial instruments called options. After the official announcement of the deal Heinz’s share price rose by 20%.

“Irregular and highly suspicious options trading immediately in front of a merger or acquisition announcement is a serious red flag that traders may be improperly acting on confidential non-public information” said the SEC’s head of the Market Abuse Unit, Daniel Hawke.

There is no implication that Heinz or its new owners have committed any wrongdoing.

The SEC said a bank account at Goldman Sachs was used. Goldman Sachs has said it is co-operating with the investigation.

Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

White House 2024: Voter Fraud Claims Flood Social Media

Misleading allegations, rumours and outright lies about voting and fraud are flooding online spaces in…

1 day ago

Spain: At Least 158 Killed In The Country’s Worst Flooding Disaster

At least 158 people have died in Spain's worst flooding disaster in generations. On October…

4 days ago

Russia Fines Google $20,000,000,000,000,000,000,000,000,000,000,000, Surpassing Global GDP

Google has been fined two undecillion (a two followed by 36 zeroes) roubles by a…

4 days ago

Financing Your Home Remodel: 7 Tips for Success

Embarking on a home remodel is an exciting journey, promising enhanced comfort, increased property value,…

2 weeks ago

Donald Trump Serves Up McDonald’s Fries While Kamala Harris Celebrates 60th Birthday with Church Choir

The US presidential candidates continued to campaign across key swing states on October 20. Footage…

2 weeks ago

America PAC: Elon Musk Promises to Award $1M Each Day to Swing States Voters

Elon Musk has said he will give away $1 million a day to a registered…

2 weeks ago