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In flap over S. Carolina law, old tensions and a campaign issue

In flap over S. Carolina law, old tensions and a campaign issue


By Andy Sullivan COLUMBIA, South Carolina (Reuters) - The state that fired the first shot in the Civil War is once again battling the U.S. government in a racially charged conflict that is drawing ...
Divers suspend search of capsized Italy liner

Divers suspend search of capsized Italy liner


By Steve Scherer and Gabriele Pileri GIGLIO, Italy (Reuters) - Divers searching the capsized Italian cruise liner Costa Concordia suspended work on Wednesday after the vast wreck shifted slightly but officials said they are ...
Italy ship search suspended after hulk moves-officials

Italy ship search suspended after hulk moves-officials


GIGLIO, Italy (Reuters) - Italian divers suspended their search of the capsized cruise liner Costa Concordia after the vessel shifted slightly on its resting place near the Tuscan island of Giglio, officials said on Wednesday. ...

Traders work at the post that trades H.J. Heinz Co. on the floor of the New York Stock Exchange, February 14, 2013. REUTERS/Brendan McDermid

SEC files lawsuit over Heinz option trading
SEC files lawsuit over Heinz option trading
Posted : Friday, 15 February 2013 04:26PM

(Reuters) - Securities regulators on Friday filed suit against unknown traders in the options of ketchup maker H.J. Heinz Co, alleging they traded on inside information before the company announced a deal to be acquired for $23 billion by Warren Buffett's Berkshire Hathaway and Brazil's 3G Capital.

The suit, filed in federal court in Manhattan, cites "highly suspicious trading" in Heinz call options just prior to the February 14 announcement of the deal.

It claims the traders are either in, or trading through accounts in, Zurich, Switzerland.

On Wednesday, there was a sudden burst of bullish call options buying, expecting that H.J. Heinz shares would rally in coming months. After the deal was revealed Thursday, options market experts called Wednesday's trading "suspicious and incredibly well-timed.

The SEC has obtained an emergency order to freeze assets in a Swiss account linked to the trading.

"Irregular and highly suspicious options trading immediately in front of a merger or acquisition announcement is a serious red flag that traders may be improperly acting on confidential nonpublic information," Daniel M. Hawke, Chief of the SEC's Division of Enforcement's Market Abuse Unit said in a statement.

Representatives of Heinz, Berkshire Hathaway and 3G were all unavailable for immediate comment.

The suit is Securities and Exchange Commission vs. Certain Unknown Traders in the Securities of H.J. Heinz Co, U.S. District Court, Southern District of New York, No. 13-1080.

(Reporting by Jonathan Stempel and Bernard Vaughan; Writing by Ben Berkowitz; Editing by Leslie Adler and David Gregorio)

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