ZCZC
BCN-11
FRANCE-BRITAIN-MARKETS-INQUIRY
Seven Britons testify in French insider trading inquiry
PARIS, Sept 15, 2018 (BSS/AFP) – Seven Britons including a now-retired
journalist appeared at a hearing summoned by France’s market regulator on
Friday as part of an inquiry into suspected insider trading of Paris-listed
stocks.
AMF board members said investigators had uncovered several trades
suggesting that sources for the journalist were alerted to market-moving
information before he published them in his daily financial newsletter.
Although the journalist Geoff Foster, a former Daily Mail contributor, did
not directly profit from the trades himself, investigators said his sources
made profits worth several thousand euros on trades in 2011 and 2012.
“I would never indicate what I was going to write, all I would say is
thank you for the rumours,” Foster told the board.
“In my 40 years’ experience I would definitely not tell anybody what was
going to be in my market report. It would be a serious breach of my ethics
and professional principles.”
The information concerned potential deals for high-profile stocks
including Christian Dior as well as less-known names like the oil services
group Maurel & Prom and the chemicals company Arkema.
In one case, suspicious trades were discovered just before the newsletter
reported a potential 350 euro per share takeover offer by luxury giant LVMH
for its smaller rival Hermes — more than 86 percent above its market price
at the time.
Four of the people testifying booked suspicious profits ranging from
13,000 to 38,000 euros ($15,000 to $44,000), the AMF says.
BSS/AFP/HR/0958