ST Alpha - "Insider trading basically." (Reading a Post)

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Insider trading basically.

Posted by spamlet Nov 18 '14, 15:13

He got together with a company to buy a target company. Before that offer was announced, he bought ~10% of the stock of the target.

Realizing target could get away another company trumped his bid, but he still makes $2.2b because he knew that the original offer was going to be made (because he set it up).

Responses:

It's not but I understand why it seems shady. It's bending a rule rather than breaking it. -- nm - David Nov 18, 15:17
[deleted] 17
- Grandpa Mo is a drunkard, don't take stock tips from him. -- nm - Cuzzin Todd Nov 18, 15:29
- I don't think the claim is a winner (or will even be pursued), but I think the point of the article is more that it's market manipulation than insider - pmb Nov 18, 15:25 12
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  - [deleted] 2
    - I largely agree, but again, it's just not an option available to any investor so it shows how the markets are somewhat rigged in favor of those who - pmb Nov 18, 15:44 1
      - [deleted]
  - It's a great example of how the market gets driven by very few people, many of whom are dangerously reckless. -- nm - David Nov 18, 15:28 7
    - The counterpoint is that all the investors in that company benefitted. His actions generated a high valuation of the company. The flipside of course - pmb Nov 18, 15:31 6
      - [deleted] 5
        
        Of course, but this was an acquisition that he essentially orchestrated not for the best interests of the company, but for his own. - pmb Nov 18, 15:48 4
        
        [deleted] 1
        
        Again, yes. I'm just trying to make the point about why this "feels different". He wasn't really looking to be the purchaser (though he was willing - pmb Nov 18, 15:58
        
        How is this different than the 'old' version of the hostile takeover? -- nm - Ender Nov 18, 15:51 1
        
        Really, it just never got that far. And there's a reasonable chance it wouldn't have (it's expensive and there are often defenses available to the - pmb Nov 18, 16:00
- "basically". It's not under the current definition which is why I'd expect something to be done to shut down collusion of this type. -- nm - spamlet Nov 18, 15:24
- Pshaw! What do you know about insider trading?! -- nm - Ender Nov 18, 15:18 1
  - if you trade in Buffalo it's far more convinient today - DaneDukeNuuk Nov 18, 15:21

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Insider trading basically.

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