FBI said to be investigating Heinz options trades
CBC News
Posted: Feb 20, 2013 12:50 PM ET
Last Updated: Feb 20, 2013 4:18 PM ET
Traders work at the post that trades H.J. Heinz Co. on the floor of the New York Stock Exchange. A $90,000 options position in Heinz rose to a value of paper of $1.8 million after a takeover bid was announced. (Brendan McDermid/Reuters)
Related
Both the Wall Street Journal and the New York Times are reporting that the FBI has opened a criminal inquiry into trading related to last week’s $23 billion US takeover of H.J. Heinz Co.
The U.S. Securities and Exchange Commission last week froze assets held in a Swiss bank account after a series of options trades made just before Berkshire Hathaway and 3G Capital announced the proposal.
The news sent the shares soaring by 20 per cent.
Options allow a trader to make a bet on the possibility of a sharp rise in share values and provide a much higher rate of return than buying the actual shares.
The Times, quoting the SEC, says the $90,000 in options were purchased through a Swiss account at New York-based bank Goldman Sachs, and soared to a value on paper of $1.8 million.
Goldman is not accused of any wrongdoing and is cooperating with the SEC.
Heinz shares closed down six cents at $72.14 in New York.
Share Tools
Top News Headlines
- Spectator killed at Edmonton Jeep event
- A 20-year-old woman died Saturday during an event for Jeep enthusiasts held in the parking lot just west of downtown Edmonton. more »
- Rescue attempt over for missing fishermen in New Brunswick
- The rescue attempt for two missing fishermen has been called off in New Brunswick, hours after one body was found. more »
- Afghan legislators block law protecting women
- An Afghan legislator says conservative lawmakers have blocked approval of a law that aims to protect women's freedoms, saying parts of it violate Islamic principles. more »
- Senator Pamela Wallin leaves Conservative caucus
- Senator Pamela Wallin says she is recusing herself from the Conservative caucus while her travel expense claims are under scrutiny. Wallin's departure comes one day after Senator Mike Duffy left the Tory caucus amid controversy over his expense claims. more »
Must Watch
Latest Business Headlines
- 1 year later, Facebook stock remains below IPO price
- A year after Facebook's high profile IPO, investors are still skeptical about its prospects and the stock price is wallowing. more »
- IRS's integrity at stake in scandal over screening of conservative groups
- Unloved in the best of times, the Internal Revenue Service will have to scramble to convince U.S. lawmakers and the public that its intentions were pure, not partisan, when it subjected groups affiliated with the Tea Party movement and other conservative causes to special scrutiny. more »
- GM shares close above IPO price for 1st time in 2 years
- Shares of General Motors reached an important milestone on Friday, closing above their initial public offering price of $33 US for the first time in more than two years. The day wasn't bad for GM's rivals either, with Ford shares closing above $15 for the first time since May 2011 and Toyota, Honda and Nissan all hitting 52-week intraday highs. more »
- AECL to cost $236M more than expected this year
- A new report from the parliamentary budget officer shows Atomic Energy of Canada Ltd. continues to be a drain on the public purse and will cost an additional $236 million this year. more »
Lang & O'Leary Exchange
Markets
| Index | Last Trade | Change |
|---|---|---|
| TSX COMPOSITE | 12613.05 | 105.45 |
| DOW | 15354.40 | 121.18 |
| NASDAQ | 3498.97 | 33.73 |
| SP 500 | 1667.47 | 17.00 |
| TSX-VENTURE | 934.68 | 1.82 |
The data on this site is informational only and may be delayed; it is not intended as trading or investment advice and you should not rely on it as such.
- Senator Pamela Wallin leaves Conservative caucus
- Toronto Mayor Rob Ford denies crack cocaine allegations
- Milwaukee bar wins overturn of bra ban
- Afghan legislators block law protecting women
- Rescue attempt over for missing fishermen in New Brunswick
- Tim Bosma public memorial Wednesday in Hamilton, Ont.
- Toronto Mayor Rob Ford cancels weekly radio show
- Public raising funds to buy alleged Rob Ford crack video
- Dennis Oland named as prime suspect in father's slaying
