Shares Question
Discussion
Hypothetical question in the office today, based on some rough figures.
Our company are owned by a much larger multinational company which are listed on the LSE. We have a rough TO of roughly 7-8M whilst our parent company is circa 200M.
There is a slim possibility we land a deal worth roughly 50m per year. If we were to purchase shares in our parent company prior to this deal going through, we assume this would be classed as insider trading? Would there be any way around this or best to avoid completely?
Our company are owned by a much larger multinational company which are listed on the LSE. We have a rough TO of roughly 7-8M whilst our parent company is circa 200M.
There is a slim possibility we land a deal worth roughly 50m per year. If we were to purchase shares in our parent company prior to this deal going through, we assume this would be classed as insider trading? Would there be any way around this or best to avoid completely?
Insider dealing is usually described as trading based on information that is not available generally to the public, and extends to encouraging other parties to also trade in this way. So giving information to, for example, family members so they can do a deal is also insider trading.
From what you say you are close to considering doing a share trade that will infringe the insider trading legislation.
You have asked for ways round this legislation. There is no way round it that remains within the law as far as I am aware. Finding ways round and using or encouraging third parties to do so is contravention too.
R.
From what you say you are close to considering doing a share trade that will infringe the insider trading legislation.
You have asked for ways round this legislation. There is no way round it that remains within the law as far as I am aware. Finding ways round and using or encouraging third parties to do so is contravention too.
R.
Yup. Buy the business out from the parent. Alternatively set up your own rival and take the client with you. The latter is a surprisingly common way that industry employees set up their own ventures, often in partnership with the big client. Or go and work for the client, setting yourself up as the lead for managing this side of their business.
Most people chose insider dealing as it just easier and deep down they quite like the idea of the opportunity to become Big Ron’s new girlfriend.
Most people chose insider dealing as it just easier and deep down they quite like the idea of the opportunity to become Big Ron’s new girlfriend.
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