The Federal Bureau of Investigation has opened an inquiry into suspicious trades placed ahead of the $23 billion acquisition of H.J. Heinz, a person briefed on the matter said.
The F.B.I.’s involvement adds to the scrutiny surrounding the deal. Last week, the Securities and Exchange Commission froze a Swiss account linked to possible insider trading in the Heinz takeover.
Like the S.E.C., the F.B.I.’s office in New York, one of the main players behind the government’s recent crackdown on insider trading, is examining a series of well-timed options trades made a day before Berkshire Hathaway and the investment firm 3G Capital agreed to buy Heinz. The deal sent the company’s shares â€" and the value of the options contracts â€" soaring.
“The F.B.I. is consulting with the S.E.C. to see if a crime was committed,†an F.B.I. spokesman said in a statement.
The investigation centers on an unusual spike in options trades involving Heinz. The traders bought 2,533 call options onWednesday through a Swiss account at Goldman Sachs, according to the S.E.C., which called the activity a “drastic†uptick in trading.
At the time of the S.E.C.’s action on Friday, authorities had not yet determined the identity of the traders, and the F.B.I. declined to comment further on Tuesday. Goldman, which is not accused of wrongdoing, was the conduit for the trades. A bank spokesman said Goldman was “cooperating†with the investigation.
Using what is known as a call option, the unknown traders placed a bullish bet on Heinz without actually buying the company’s
shares. Instead, the investors have the opportunity to buy the stock at a given price through June.
The move struck authorities as strange. For months leading up to the deal announcement, there had been scant activity in Heinz options. On Tuesday, for example, only 14 call options were bought. A day earlier, there was no trading. The Swiss account in question showed no recent activity in Heinz options,! the S.E.C. said.
The anonymous investors spent nearly $90,000 on the call options, a position that skyrocketed on paper to $1.8 million after the deal was announced Thursday. At the time, Heinz’s stock rose to $72.50, up 20 percent from Wednesday, matching the offer price.
“The timing, size and profitability of the defendants’ trades, as well as the lack of prior history of significant trading in Heinz†in the account, the commission said in the complaint, “makes these trades highly suspicious.â€
The growing inquiry may cast a cloud over the Heinz deal. While the S.E.C. already raised concerns, the F.B.I.’s examination adds to the scrutiny and for the first time raises the prospect of criminal wrongdoing.
Once authorities identify the traders, the S.E.C. and F.B.I. will turn their focus to the universe of insiders who could have leaked details of the deal. Dozens of people had knowledge of confidential information about the deal, including bankers, lawyers and executive at both the buyers and the seller.
An S.E.C. spokesman did not immediately respond to a request for comment.
