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Two sued in Dow Jones share trade | Two sued in Dow Jones share trade |
(10 minutes later) | |
US regulators have accused a Hong Kong couple of using insider information to profit from a $5bn (£2.5bn) takeover bid for Dow Jones. | US regulators have accused a Hong Kong couple of using insider information to profit from a $5bn (£2.5bn) takeover bid for Dow Jones. |
The US Securities and Exchange Commission (SEC) has filed a lawsuit against Kan King Wong and his wife, Charlotte Ka On Wong Leung. | The US Securities and Exchange Commission (SEC) has filed a lawsuit against Kan King Wong and his wife, Charlotte Ka On Wong Leung. |
The SEC alleged the couple engaged in "unlawful trading activity" ahead of News Corps' surprise 1 May offer for the US media firm. | The SEC alleged the couple engaged in "unlawful trading activity" ahead of News Corps' surprise 1 May offer for the US media firm. |
The firm's shares rose 50% on the bid. | The firm's shares rose 50% on the bid. |
Assets frozen | Assets frozen |
The SEC, the New York Attorney General and the Securities and Exchange Commission are looking into trading patterns in share options ahead of the buyout offer. | The SEC, the New York Attorney General and the Securities and Exchange Commission are looking into trading patterns in share options ahead of the buyout offer. |
In court documents, the SEC said the Hong Kong residents bought 415,000 shares of Dow Jones worth $15m between 13 April and 30 April. | In court documents, the SEC said the Hong Kong residents bought 415,000 shares of Dow Jones worth $15m between 13 April and 30 April. |
The purchases occurred while they possessed "material non-public information" about the impending $60-a-share offer and would have seen Mr Wong and his wife net a gain of $8.18m. | The purchases occurred while they possessed "material non-public information" about the impending $60-a-share offer and would have seen Mr Wong and his wife net a gain of $8.18m. |
The US court judge has temporarily frozen these assets, which were accumulated in a Merrill Lynch brokerage account, in response to a request from the SEC. | |
"Insider trading is a violation of both the law and Merrill Lynch policy and we co-operate fully with the authorities investigating suspected cases," a Merrill Lynch spokesman said. | "Insider trading is a violation of both the law and Merrill Lynch policy and we co-operate fully with the authorities investigating suspected cases," a Merrill Lynch spokesman said. |
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