FSA Probes Possible Insider Trading Activity Related To M&S Takeover

by Robin Pilgrim, LawAndTax-News.com, London

30 June 2004

Following suggestions that insider trading may have taken place in connection with the ongoing takeover battle for UK retailer, Marks and Spencer, the Financial Services Authority has released a statement on the matter.

Prior to his appointment as the firm's new chief executive, Stuart Rose purchased 100,000 Marks and Spencer shares following a telephone conversation with retail entrepreneur Philip Green on May 7. A few days after their conversation, Mr Green unveiled his proposed takeover bid.

Mr Rose has insisted that he knew nothing of Mr Green's intentions towards the firm until a May 12 meeting, but some observers have suggested that charges of insider trading or market abuse may now be levelled at the M&S chief executive.

In a statement released on Monday, the UK's financial services regulator revealed that:

"The FSA on 28 May announced that, in line with its policy of reviewing all suspicious price movements, it was reviewing trading in the securities of Marks & Spencer Group plc, and related derivative instruments prior to the announcement by Revival Acquisitions Limited on 27 May 2004 that it was considering a possible offer for the Company."

"The FSA can now confirm that following these initial enquiries it has referred the matter for investigation to its Enforcement Division. No further statements will be made on the matter at this time."

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