Thursday, April 30, 2009

Wall Street Journal Confirms Insider Trading Investigation by SEC -- related to Trading Prior to Merger Announcement

This is no surprise, given the short-dated, out of the money call option volumes on March 6, 2009 -- the Friday before the March 9, 2009 announcement of a proposed reverse merger -- but this makes it official. Per The Wall Street Journal:

. . . .The Securities and Exchange Commission is investigating trading of Schering-Plough Corp. shares ahead of its announced merger with Merck & Co., people familiar with the matter said. . . .

Interesting. Who might have "tipped"? Who might have traded? We'll know pretty soon. At this point, there is no reason to suspect that any Schering-Plough employee is a target.

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