Silence on insider trading probe

Silence on insider trading probe

Australian authorities are investigating a suspected insider trading ring that may have profited from Kirin Holdings' takeover of Lion Nathan, according to a report.

The Australian Securities and Investments Commission (ASIC) is investigating whether individual traders broke confidentiality clauses by passing on details of the Lion Nathan deal before it was publicly announced, the Sydney Morning Herald newspaper reported this week.

The probe has focused on individual traders at Deutsche Bank, which advised Kirin on its A$3.3bn (US$3bn) acquisition of all outstanding Lion Nathan shares, said the report.

Kirin, which previously owned 46% of Lion Nathan, announced its intention to buy the remaining 54% of the brewer on 23 April last year. It priced its bid at A$11.5 per share on 27 April.

"ASIC does not comment on operational matters," a spokesperson for ASIC said last night (21 April).

A spokesperson for Lion Nathan said: "While we have seen the media reports, we have no comment to make as the issue does not directly concern our business."