Traders sued over Heinz share bets

 

Nikhil Kumar
Saturday 16 February 2013 01:31
Comments

Warren Buffett’s takeover of Heinz, the American food giant, is at the centre of an insider-trading case after regulators filed suit against unknown traders operating via a Swiss account who they allege had placed bullish bets on the ketchup maker on the basis of privileged information.

The account in question is a Goldman Sachs customer account.

Mr Buffett and the private-equity group 3G Capital went public with their $28bn buyout of Heinz on Thursday. But the day before, unidentified traders who are either based, or trading via accounts, in Zurich, Switzerland, made a series of bets that Heinz’s shares would rise.

According to the complaint filed in a Federal Court in New York, which is meant to stop the traders taking the money they made by making the bets when the shares skyrocketed on Thursday by freezing the assets, the account was in the name of GS Bank IC Buy Open List Options GS & c/o Zurich. Last night, Goldman Sachs, which is not accused in the filing, said it was co-operating with the Securities Exchange Commission, the US market regulator.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Join our new commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in