Insider trading in Heinz deal?
The Heinz deal with Warren Buffett is under criminal investigation with the FBI.
Earlier this week the financial and food hotwires were burning up over the richest deal ever in the food industry when Warren Buffett bought HJ Heinz Co for $23 Billion.
According to the Reuters the FBI are now looking into allegations of insider trading:
"The FBI is looking into possible insider trading in the options of ketchup maker H.J. Heinz Co before its blockbuster deal last week to be acquired by Warren Buffett and Brazil's 3G Capital, a bureau spokesman said on Tuesday.
Buffett's Berkshire Hathaway and 3G said last Thursday they would buy Heinz for $23 billion in cash. Almost immediately, options market players noted there had been extremely unusual activity the day before the deal was announced.
On Friday, the U.S. Securities and Exchange Commission filed a suit against unknown traders who it said used a Goldman Sachs account in Switzerland to trade on purported inside knowledge of the transaction.
On Tuesday, the Federal Bureau of Investigation said it was joining in as well".
Well the stock certainly soared going up nearly 20 percent, closing at $72.50 Thursday on the New York Stock Exchange.
I only wish I had known Buffett was going to buy Heinz.
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