29 mai, 2007 16:06
SEC PROBING DOW CHEMICAL
Bloomberg
May 26, 2007 -- The Securities and Exchange Commission opened an inquiry into trading of Dow Chemical Co. that took place before the company accused two executives of holding unauthorized merger talks and fired them, according to two people familiar with the probe.
The SEC has requested information from Dow and the two men, Romeo Kreinberg, 56, and J. Pedro Reinhard, 61, the people said.
The probe covers the months before the company dismissed the executives in April, saying they met with banks and foreign governments to arrange a leveraged buyout. Both denied the allegations and sued Dow for defamation.
"Romeo Kreinberg has never sought to sell all or part of the Dow Chemical Co. and has under no circumstances
violated any SEC rules or regulations," said his lawyer, Stanley Arkin. Joan Campion, a spokeswoman for Reinhard,
had no immediate comment.
U.S. regulators are cracking down on suspicious trading ahead of mergers and acquisitions, which are running at a record $2.22 trillion so far this year.
The SEC sued a Hong Kong couple May 8 for trading on inside information about News Corp.'s $5 billion offer for Dow Jones & Co. The agency is also probing trades in SLM Corp. ahead of a $25 billion bid for the student loan company led by J.C. Flowers & Co.
Spokesmen for Dow Chemical and the SEC both declined to comment.
