Escom Stock Trading Under Investigation
July 10, 1996 (CUCUG) - One more potential piece of bad news
for Germany's Escom, the soon-to-be-former owner of Amiga Technologies,
hit the wires recently. Reuters is now reporting that the company is
under investigation for possible insider trading by Germany's
Securities Trading Supervisory Office. In the few days prior to Escom's announcement of their intentions to
file for protection from creditors last Wednesday, July 3, the German
oversight agency (similar to the Securities and Exchange Commision in
the US) noted a "suspicious" surge of sell-off trading of Escom
shares.
Anke Reeh-Schild, a GTTSO spokesperson told Reuters, "The turnover
seen was very suspicious in comparison with previous levels," and went
on to note that the increase was eight to nine times higher than usual.
The investigation could take months to determine any wrong doing,
though, as data on all transactions and bank records must be analyzed.
No Escom officials are named in the investigation.
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