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April 27, 2007
Possible Insider Trading Before Harman Deal -- Say It Ain't So!
This will come as a shock for those who follow the mergers and acquisitions area. A Bloomberg story (here) notes that in the days before Harman International Industries announced it had agreed to be bought out by KKR and Goldman Sachs on April 26, trading in call option contracts on the company's shares spiked, to the tune of almost twenty (20) times the average daily volume. On April 18, the volume of contracts was over 11,000 while the average daily volume over the previous twenty days was a shade under 600. The volume in the May 105 contracts, which are the shortest term options available, led the way, and when Harman announced the deal, its stock shot up by $19 to $122 per share. Imagine that -- trading in slightly out of the money call options are suddenly way in the money, leading to an outsized gain. Look for the SEC insider trading case to be filed at some point, and perhaps even a criminal case, and on the chance any of the call option purchases came through an overseas account the filing will be sooner rather than later. (ph)
April 27, 2007 in Insider Trading | Permalink
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Comments
Hi
Your blog is quite nice and informative.
As far as stock market is concerned. Trading in market requires
both time and Knowledge. Without these two factors its impossible to trade .
If you get recommendations from some specialist then also you must keep in mind its your money you
should invest it wisely. Its always advisable to get recommendations from analyst but again before investing you should do your research also.
Indian stock market is very high already now wait for dips before going long in Nifty or in some script.
If you have any Query please feel free to contact us.
Regards
Sharetipsinfo team
Posted by: Sharetipsinfo | May 14, 2007 5:54:01 AM
Hi
Your blog is quite nice and informative.
As far as stock market is concerned. Trading in market requires
both time and Knowledge. Without these two factors its impossible to trade .
If you get recommendations from some specialist then also you must keep in mind its your money you
should invest it wisely. Its always advisable to get recommendations from analyst but again before investing you should do your research also.
Indian stock market is very high already now wait for dips before going long in Nifty or in some script.
If you have any Query please feel free to contact us.
Regards
Sharetipsinfo team
Posted by: Sharetipsinfo | May 14, 2007 5:55:13 AM
Few weeks back everyone was saying that there will be Bear market for next few years and now again everyone is showing interest and markets are rising again. However, I still feel that credit crisis and recession in US will still affect the World economies and investors must stay cautious.
Posted by: Free India Share Tips | May 8, 2008 1:57:21 AM
