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Article: SEC Alleges Insider Trading In Nestle's Purchase Of Ralston.
- Article from:
- Food & Drink Weekly
- Article date:
- January 22, 2001
CopyrightCOPYRIGHT 2001 Informa Economics, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The board of Ralston Purina Co. has approved a $10.1 billion offer from giant Swiss food concern Nestle SA, clearing the way for Nestle to become one of the world's largest pet-food companies. But, the deal will face heavy scrutiny after regulators at the Securities and Exchange Commission (SEC) filed charges that some people may have profited from insider trading based on confidential information on the acquisition.
The SEC filed the charges late on Wednesday in New York federal court alleging purchases and sales of options on Ralston's stock before Nestle, the Swiss food group, announced earlier this week that it was buying U.S. pet food company. The identities ...