Illegal Petco trading alleged
From Times Wire Services
The Securities and Exchange Commission alleged that a Briton made more than $3 million of insider-trading profit through transactions before last year’s announced takeover of Petco Animal Supplies Inc.
London resident Taher Suterwalla, 30, purchased call options and other risky financial contracts tied to the price of Petco common shares just before the $1.8-billion buyout was announced, the SEC said. The agency said it filed suit in California this week demanding that Suterwalla return the profit and pay a penalty for illegal insider trading.
Private equity firms Leonard Green & Partners and TPG Inc. had announced on July 14, 2006, a deal to buy Petco for $29 a share. That day Petco shares jumped 43% to $27.89, the SEC said.
