FBI examining possible Heinz insider trades

By Agence France-Presse
Wednesday, February 20, 2013 3:14 EDT
google plus icon
A hamper of Heinz products presented to Britain's Queen Elizabeth II and Prince Philip pictured during their visit to the Heinz food factory in Wigan, northern England, on May 21, 2009. (AFP)
  • Print Friendly and PDF
  • Email this page

The FBI is examining possible insider trading in Heinz shares ahead of last week’s buyout announcement, after US regulators identified suspicious trades from a Swiss account, a spokeswoman said Tuesday.

“We’re aware of the trading anomalies the day before the announcement,” said Federal Bureau of Investigation spokeswoman Kelly Langmesser. “And we’re consulting with the SEC to see if a crime was committed.”

The Securities and Exchange Commission said Friday it had identified highly suspicious Heinz trades made one day before Berkshire Hathaway (NYSE: BRK-A – news) and 3G Capital (OTC BB: CGHC – news) announced they were acquiring the condiment giant in a $28 billion deal.

The SEC said that it had obtained an emergency order to freeze a Swiss bank account suspected of use in the trades.

It said unknown traders earned $1.7 million in profits through the “irregular and highly suspicious” trades booked on Wednesday.

The SEC said it believed the traders had knowledge of the takeover ahead of the announcement early Thursday morning in New York.

Langmesser declined to say if the FBI has opened a criminal investigation into the case.

Agence France-Presse
Agence France-Presse
AFP journalists cover wars, conflicts, politics, science, health, the environment, technology, fashion, entertainment, the offbeat, sports and a whole lot more in text, photographs, video, graphics and online.
By commenting, you agree to our terms of service
and to abide by our commenting policy.