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| Version 0 | Version 1 |
|---|---|
| Bank boss in Dow Jones deal probe | Bank boss in Dow Jones deal probe |
| (about 1 hour later) | |
| The chairman of the Bank of East Asia has been told by US watchdogs he may face civil action for alleged breaches of securities laws, the bank says. | The chairman of the Bank of East Asia has been told by US watchdogs he may face civil action for alleged breaches of securities laws, the bank says. |
| The Securities and Exchange Commission (SEC) has contacted David Li amid a probe into potential insider trading of shares in Dow Jones. | The Securities and Exchange Commission (SEC) has contacted David Li amid a probe into potential insider trading of shares in Dow Jones. |
| The SEC investgation is linked to News Corp's $5bn (£2.5bn) bid for Dow Jones, where Mr Li is a board member. | The SEC investgation is linked to News Corp's $5bn (£2.5bn) bid for Dow Jones, where Mr Li is a board member. |
| Mr Li denies wrongdoing, and said he would "defend himself vigorously". | Mr Li denies wrongdoing, and said he would "defend himself vigorously". |
| 'Broken no laws' | 'Broken no laws' |
| He has been served with a "Wells Notice" indicating that the SEC's enforcement division is considering recommending the agency bring civil enforcement action against him. | He has been served with a "Wells Notice" indicating that the SEC's enforcement division is considering recommending the agency bring civil enforcement action against him. |
| The bank said no such action has yet been brought. | The bank said no such action has yet been brought. |
| "I have broken no laws and deny the apparent allegations being made by the staff of the Commission," Mr Li said. | "I have broken no laws and deny the apparent allegations being made by the staff of the Commission," Mr Li said. |
| "If the Commission does commence proceedings against me, I will defend myself vigorously." | "If the Commission does commence proceedings against me, I will defend myself vigorously." |
| Earlier this week the Dow Jones board voted to back a takeover by Rupert Murdoch's News Corporation. | Earlier this week the Dow Jones board voted to back a takeover by Rupert Murdoch's News Corporation. |
| Dow Jones, owner of the Wall Street Journal, confirmed it "would be prepared to approve, and recommend to the Dow Jones stockholders" the agreement, it said in a statement. | |
| Unusual trading | Unusual trading |
| The deal's future now rests with shareholders in the Bancroft family, which holds 64% of the voting stock. | The deal's future now rests with shareholders in the Bancroft family, which holds 64% of the voting stock. |
| The proposal is expected to be presented to the Bancrofts at a meeting on Thursday. | The proposal is expected to be presented to the Bancrofts at a meeting on Thursday. |
| If the deal goes ahead, the deal could reshape the US media landscape. | If the deal goes ahead, the deal could reshape the US media landscape. |
| The offer represents a 65% premium on Dow Jones' share price at the time the deal was announced. | The offer represents a 65% premium on Dow Jones' share price at the time the deal was announced. |
| However, the SEC and the New York State attorney general have been looking into unusual trading in Dow Jones stock and options in the weeks before the company disclosed the $60 per share buyout offer from News Corp on 1 May. | However, the SEC and the New York State attorney general have been looking into unusual trading in Dow Jones stock and options in the weeks before the company disclosed the $60 per share buyout offer from News Corp on 1 May. |