Winnipeg Free Press - PRINT EDITION
Posted: 02/16/2013 1:00 AM | Comments: 0
NEW YORK -- U.S. regulators have opened an insider-trading inquiry on the $23-billion acquisition of H.J. Heinz, according to a published report.
Citing an unnamed source who was briefed on the matter, the New York Times reported Friday the Securities and Exchange Commission is looking at "unusual trading" surrounding the deal for Heinz to be purchased by Warren Buffett's Berkshire Hathaway and 3G Capital, an investment firm that also recently bought Burger King. The report said regulators first noticed a suspicious spike in trading on Wednesday.
A spokeswoman for the SEC, Christina D'Amico, said the agency does not confirm or deny the existence of investigations. Representatives for Berkshire Hathaway and the public relations agency representing 3G and Berkshire in the deal did not immediately return messages for comment. A spokesman for Heinz said the company hadn't been contacted by the SEC and therefore did not have any comment.
In announcing the deal, Heinz said the company planned to remain in Pittsburgh and that the move would help it continue its transformation into a global business more quickly. In addition to ketchup, the company makes Classico pasta sauces and Ore-Ida potatoes.
The New York Times report noted options trading in Heinz soared this week before the deal was announced Thursday morning.
Call options let investors place a bet on a stock without committing to buy the shares. Investors instead have the option to buy the shares later for a set price.
-- The Associated Press
Republished from the Winnipeg Free Press print edition February 16, 2013 B9
Have you found an error, or know of something we’ve missed in one of our stories? Please use the form below and let us know.
Having problems with the form?Contact Us Directly
Tire program gains traction
Couche-Tard buying The Pantry for US$1.7B
France fines 13 firms $1.2 bln for price-fixing
EU bans investment in Crimean, targets tourism
'Interview' ordeal at Sony just its latest crisis
A look at North Korea's cyberwar capabilities
Greek jobless rate dips further to 25.5 per cent
California power regulator to address allegations
Subway co-founder will allow kids to use his field
Fed rate wording boosts world stock markets
Swiss central bank imposes negative interest rates
German business confidence up for 2nd month
Incentive shifts economics of Ebola vaccine
Putin accuses West of trying to sideline Russia
Russians make big buys in front of price hikes
Canad Inns, Ledohowski take aim at allegations
American Apparel's troubles grow worse
Vegas hotelier faces gambling commission scrutiny
Circus disputes citation for hair-hanging accident
Fed rate wording boosts Asian stock markets
Sony emails show a studio ripe for hacking
N Korea-linked Sony hack may be costliest ever