Stockhouse Canada – The Financial Services Authority has launched a probe into suspicious share price movements involving leading British companies rumoured to be takeover targets. Officials fear that hedge funds or other investors may be spreading rumours purely to extract financial advantage.
Whitbread, Scottish and Newcastle, Carphone Warehouse, condoms company SSL, energy group Scottish and Southern, Next and ICI are some of the high-profile firms that have seen their shares jump by as much as 10 per cent in a single day, amid speculation about imminent takeovers.
Article continues A dealer at a leading bank said: ‘I think there are issues that need investigating. Share price rises present an opportunity for people to make big money, which is fine as long as no one is spreading stories designed to create a false market. That would be something for the authorities to stamp on.’
