SEC investigating suspected insider trading in Heinz acquisition

A Swiss bank account that was linked to call options on Heinz has been frozen.

The US Securities and Exchange Commission (SEC) has frozen the assets of a Swiss bank account suspected of involvement in insider trading directly preceding Heinz’s acquisition by Berkshire Hathaway last week. According to SEC, unknown traders bet that Heinz’s stock would go up by purchasing call options the day before the acquisition’s announcement. When Heinz’s stock jumped 20 percent following the deal, those options translated to a gain of about $1.7 million. “Irregular and highly suspicious options trading immediately in front of a merger or acquisition announcement is a serious red flag that traders may be improperly acting on confidential nonpublic information,” says Daniel M. Hawke of the SEC’s Market Abuse Unit. SEC’s complaint charges the traders with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.

Did you enjoy this article? Click here to subscribe to Food Engineering Magazine.

Recent Articles by Shane O'Halloran

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Plant of the Year 2015

Mars Chocolate was chosen as Food Engineering’s 2015 Plant of the Year. The first new Mars candy plant in North America in 35 years is not only LEED Gold certified, it’s highly automated as well.

Podcasts

Burns & McDonnell project manager RJ Hope and senior project engineer Justin Hamilton discuss the distinctions between Food Safety and Food Defense as well as the implications for food manufacturers of the Food Safety Modernization Act.
More Podcasts

Food Engineering

Food Engineering April 2015 Cover

2015 April

The April 2014 issue of Food Engineering features the Plant of the Year: Mars Chocolate. The first new Mars chocolate candy plant in North America in 35 years is not only LEED Gold certified, it’s highly automated as well.

Table Of Contents Subscribe

Plant Facility/Site Issues

What issue about your current plant facility/site keeps you up the most at night?
View Results Poll Archive

THE FOOD ENGINEERING STORE

Food-Authentication-Flyer-(.gif
Food Authentication Using Bioorganic Molecules

This text provides critical tools and data needed to augment routine food analysis and enhance food safety by aiding in the detection of counterfeit, and potentially deleterious, foods.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

STAY CONNECTED

FE recent tweets

facebook_40.pngtwitter_40px.pngyoutube_40px.png linkedin_40px.pngGoogle +

Food Master

Food Engineering Food Master 2015Food Master 2015 is now available!

Where the buying process begins in the food and beverage manufacturing market. 

Visit www.foodmaster.com to learn more.