Insider Traders Profited From $28B Heinz Deal, SEC Says
By Max Stendahl
Law360, New York (February 15, 2013, 5:21 PM EST) -- The U.S. Securities and Exchange Commission on Friday sued multiple unnamed investors who allegedly made $1.7 million by trading H.J. Heinz Co. securities just before Warren Buffett's Berkshire Hathaway Inc. and private equity firm 3G Capital Management LLC bought the iconic firm for $28 billion.
The traders, who were not identified in a New York federal court complaint, allegedly purchased a large number of so-called call options on Wednesday that were primed to gain value if Heinz’s stock price rose. When the merger was publicly announced...