US probing apparent insider dealing ahead of TXU buyout bid

0 Comments | AFP, March, 2007

WASHINGTON (AFP) — US regulators said Friday they were probing an alleged case of insider dealing tied to the stock of Texas energy group TXU just before a private equity consortium announced a mega 45-billion-dollar bid for the utility in late February.

The Securities and Exchange Commission (SEC) said in a statement that the suspected insider dealing was perpetrated just days ahead of the public announcement of the massive takeover, which saw TXU's shares rally over 13 percent.

The persons behind the improper trades made illicit profits of at least 5.4 million dollars, the SEC said.

Regulators are working to identify the as-yet mystery owners of the trading accounts through which the suspicious orders were executed.

"Unknown purchasers, using...