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The SEC reportedly is investigating a surge in trading of Heinz (HNZ) call options on Tuesday,...

  • Friday, February 15, 3:10 AM ET
    The SEC reportedly is investigating a surge in trading of Heinz (HNZ) call options on Tuesday, before news the company was being bought by Berkshire Hathaway (BRK.A) and 3G Capital for $28B, or $72.50 a share. A Heinz $65 call option expiring on June 22 apparently had a volume of 2,593 contracts on Wednesday vs. an average over the prior 20 days of 13. 3G's acquisition of Burger King in 2010 came under similar scrutiny.
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This news story has 7 comments:

  •  
    SEC will investigate. Nobody will be charged. Nobody will be punished. Basically it will be a "nothing to see here" case closed. There was a HUGE lesson that came out of the Financial Crisis of 2008. The laws of the United States do not apply equally to the largest corporations and their officers.
    15 Feb, 03:34 AM Reply Like
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    "equally" is putting it very diplomatically. The laws of the USA do not apply AT ALL to those crony capitalists with strong ties to Washington. May I gently remind people of a certain wonderful fellow named Corzine who is responsible for the theft of over 1 billion $ and still a free man? Whilst your typical next door thug robbing a gas station for a case of beer ends up for years behind bars.

    What has become of the icon for freedom, democracy and justice?
    15 Feb, 05:27 AM Reply Like
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    Tyco CEO was put behind bars and still serving time. Enron CEO was close to being convicted before he died. Inside traders of Dow Jones buy out was made to pay hugh fine even when they were foreign citizens. I for sure won't dare to trade based on inside information.
    15 Feb, 06:06 AM Reply Like
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    The few handful that were ever convicted in the vast morass of Wall Street corruption and fraud probably didn't contribute enough to certain political campaigns to warrant intervention. Moral of the story: always make sure you've donated enough.
    15 Feb, 07:02 AM Reply Like
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    It might be the politicians themselves....they have a pretty big book
    15 Feb, 07:33 AM Reply Like
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    I agree the politicians may indeed be the beneficiaries of this frontrunning trade. John Kerry may have communicated to Congress the likely intentions of Americas favorite downhome, folksy crony capitalist Warren Buffet.
    15 Feb, 09:17 AM Reply Like
  •  
    It's probably foreign traders with ties to 3G who will never be charged.
    15 Feb, 06:54 PM Reply Like
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