SEC Eyes Hedge Fund's Influence In Merger Talks

Law360, New York (January 11, 2006, 12:00 AM EST) -- Expanding its probe of the lightly-regulated hedge fund industry, the Securities and Exchange Commission is eyeing investment manager Perry Capital LLC regarding questionable trading techniques that allowed the firm to influence a pharmaceutical company’s takeover plans.

The regulator sent a so-called Wells Notice to New York-based Perry Capital, indicating legal action was forthcoming due to possible violations of disclosure rules surrounding the trades.

The notice gives Perry Capital co-founder Richard C. Perry a chance to defend the firm’s actions prior to the SEC’s complaint being filed...
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