WEST PALM BEACH, FL (www.hedgeco.net) – The UK�s financial market regulator FSA is looking into the activities of the GLG Hedge fund company, according to the Reuter�s report. The investigationcenters on the $2.86 billion convertible bond issued by Sumitomo Mitsui Financial Group, a unit of the Japanese third largest bank, Sumitomo Mitsui. The French regulatory authorities are also lookinginto the activities of GLG and three other hedge funds, in a separate and unrelated case, focusing on the convertible bonds issued by Vivendi.
According to news reports, the FSA is looking into GLG activities relating to the bond issued by Sumitomo Mitsui Financial Group to determine whether GLG profited in any way through the use of privileged information received from Goldman Sachs brokerage operations before the bond was issued.
Both GLG and Goldman Sachs denied commenting on the allegations. Recently some questions have come up whether the brokerage banks involved in such deals have leaked information regarding the details of such negotiations. GLG has been in talks over the acquisition of investment bank Lehman Brothers, the firm has repeatedly denied any wrongdoing in any of the mentioned cases.
FSA rules forbids funds from trading on insider information that had not been made public. The FSA and Lehman Brothers also declined to comment on the case as well. GLG is one of the largest hedge fund managers in the world, according to company reports; the firm oversees over $12.5 billion in total investor assets.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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