SEC in Technip-Global insider trading hunt

US authorities are hunting a number of mystery individuals over alleged insider trading connected with Technip’s recent $1 billion purchase of subsea player Global Industries, a report claims.

Foul play and “breaches of fiduciary duty” are suspected by the US Securities & Exchange Commission which filed a lawsuit against defendants in New York late on Friday, according to Reuters.

The filing, made in the Southern District court in New York, is aimed at clawing back an alleged illegal haul of $1.73 million plus fines from unidentified defendants who are said to have snapped up shares in Global just before Technip launched its takeover bid.

Technip and Global announced the merger deal on 12 September which saw the former splash out $1.07 billion on the US subsea construction and pipelay company in an all-cash deal. Technip offered $8 per Global share which represented a 55% premium, while is also assumed debts of $136 million.

A large chunk of shares in Global were bought through an account in the name of Austria’s Raiffeisen Bank International, the SEC alleges in its lawsuit, according to Reuters. This was done just two days before the merger deal was announced after which the shares were swiftly sold off again.

“[This] suggests that the information was obtained as a result of breaches of fiduciary duty," Reuters cites the SEC’s lawsuit as reading.

Technip’s deal for Global, funded through company coffers and existing bank loans, is expected to close next year.

Fonte: Upstream News