The Financial Services Authority (FSA) has fined David Einhorn and his well known hedge fund Greenlight Capital £7.2m for trading on inside information in UK stock Punch Taverns in June 2009.
The FSA said in a statement: "On 9 June 2009, Einhorn was a party to a telephone conference in which it was disclosed to him by a corporate broker acting on behalf of Punch Taverns Plc that Punch was at an advanced stage of the process towards a significant equity fundraising. This was inside information and Einhorn should have appreciated this." The regulator said Einhorn gave the instruction to sell Greenlight's entire holding in Punch "a matter of minutes after the telephone conversation had concluded". Greenlight held 13.3% of Punch's equity at the time of the phone conversation, ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes