Market Overview

SEC Accuses Hong Kong Traders of Insider Trading Ahead of CNOOC Takeover of Nexen

The Securities and Exchange Commission said Friday it had frozen the assets of Hong Kong traders who bought stock in Canadian oil company Nexen prior to the Monday July 23 announcement that it had been acquired by China's CNOOC Ltd. for $15.1 billion.

The SEC said traders, including Well Advantage Limited, used accounts in Hong Kong and Singapore to make over $13 million in profits trading shares in Nexen, with prior knowledge of the deal.

Benzinga reported on Friday July 20 that call volume in Nexen was at 2,633% of average, with 23,671 December 19 call contracts traded vs 56 open interest. Nexen was trading at just under $17.00 per share at the time. CNOOC announced 3 days later it had agreed to acquire Nexen for $27.50 per share.

Posted-In: News Legal M&A Global After-Hours Center

 

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