P.M. BRIEFING : ConsGold Insider Trading Probed
Britain’s Department of Trade and Industry said today it is investigating alleged insider trading in the bidding for Consolidated Gold Fields PLC, one of the biggest takeovers in British history.
More than 165,000 shares of ConsGold have been frozen by officials as part of the investigation. The trade department said it has banned trading in the small stock issue, held by nominee companies in numbered accounts, until its owners are traced.
Earlier this month, ConsGold agreed to a $5.7-billion takeover bid by British conglomerate Hanson PLC.
But inspectors are probing accusations of illegal stock deals using confidential company information shortly before the South African-backed Minerals and Resources Corp. launched the first bid in the fight for ConsGold, a $4.7-billion offer made last October.
A sharp rise in ConsGold shares in the two weeks before the initial offer was announced aroused suspicions of insider trading among some stock dealers.
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