3Com Insider Trading Probe In Effect

The SEC is looking into what many people are calling a blatant sign of insider info on the Hewlett-Packard for 3Com acquisition according to Bloomberg (hat tip Zero Hedge).

In case you missed it:

More than 8,000 3Com calls changed hands on Nov. 11, 17 times the four-week average. The most active were contracts conveying the right to purchase shares for $5 through Nov. 20, followed by December $5 calls.

Almost 4,000 of the November $5 calls and 3,300 December $5 calls traded, with almost all of the transactions occurring at noon. That compares with a total of six puts giving the right to sell 3Com shares. Palo Alto, California-based Hewlett-Packard, the world’s largest personal-computer maker, agreed to pay $7.90 a share in cash for 3Com, a 39 percent premium to the closing price on Nov. 11. The stock closed at $7.51 on Nov. 13.

This looks like a mirror image to the Dell for Perot Systems buyout of September, the regulators ultimately nabbed an employee who spread news of the deal and traded ahead.

To reiterate, I’m happy to see these blatant cases of insider trading mopped up, and I’m proud of my fellow financial bloggers who were all over the story as it happened.  For more on how the financial blogosphere broke this story in real-time, read here: 

Citizens On Patrol: The Blogosphere as Regulator


3Com Options Trade To Be Probed (Bloomberg)

SEC Probing 3Com Option Trades (Zero Hedge)




Tags: , , , , , , , , ,

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. click here commented on Sep 14

    … [Trackback]

    […] There you will find 42147 additional Information to that Topic: thereformedbroker.com/2009/11/16/3com-insider-trading-probe-in-effect/ […]

  2. how to do transitions on video star commented on Sep 15

    … [Trackback]

    […] Read More Information here on that Topic: thereformedbroker.com/2009/11/16/3com-insider-trading-probe-in-effect/ […]

  3. Verts commented on Sep 23

    … [Trackback]

    […] Read More Info here on that Topic: thereformedbroker.com/2009/11/16/3com-insider-trading-probe-in-effect/ […]

  4. Small child commented on Sep 25

    … [Trackback]

    […] Read More Info here to that Topic: thereformedbroker.com/2009/11/16/3com-insider-trading-probe-in-effect/ […]

  5. bitcoin loophole commented on Sep 30

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2009/11/16/3com-insider-trading-probe-in-effect/ […]

  6. bmo online login commented on Nov 24

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2009/11/16/3com-insider-trading-probe-in-effect/ […]

  7. CI/CD commented on Dec 20

    … [Trackback]

    […] Find More here to that Topic: thereformedbroker.com/2009/11/16/3com-insider-trading-probe-in-effect/ […]

  8. regression testing commented on Dec 22

    … [Trackback]

    […] Read More on on that Topic: thereformedbroker.com/2009/11/16/3com-insider-trading-probe-in-effect/ […]

  9. wigs for women commented on Jan 19

    … [Trackback]

    […] Read More Info here on that Topic: thereformedbroker.com/2009/11/16/3com-insider-trading-probe-in-effect/ […]