18 January 2001

SEC Investigates Nestlé Deal

According to a report in the Financial Times this morning, in an attempt to prevent gains from the Nestlé / Ralston Purina merger deal leaving the US, the US Securities and Exchange Commission, (SEC), has said that it has identified suspicious options trading activity surrounding Nestlé's acquisition of Ralston Purina in a suit filed in Manhattan yesterday. The suit apparently claims that trades were made in accounts under the name of two Swiss banks prior to the announcement of the deal.