Monday, July 30, 2012

SEC Freezes Trader Assets In Probe Of Cnooc’s Nexen Purchase


Bloomberg’s Joshua Gallu and Jasmine Wang report that the U.S. Securities and Exchange Commission obtained a court order to freeze assets of traders who allegedly reaped more than $13 million by trading illegally ahead of Cnooc Ltd.’s announcement that it would buy Nexen Inc. (NXY)Hong Kong-based Well Advantage Limited, controlled by Zhang Zhi Rong, and other unidentified traders stockpiled shares of Nexen based on confidential information about the deal, the SEC said in a July 27 statement announcing a complaint filed at federal court in Manhattan. The court order froze about $38 million in assets, the SEC said.

Nexen Inc.’s stock rose more than 50 percent on July 23 after CNOOC Ltd., China’s largest offshore oil and gas explorer, said that it would pay $15.1 billion in cash to acquire the Calgary-based company in the biggest overseas takeover by a Chinese firm….

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