The share rose 12% before today’s big announcement, and then fell 8.9%.
Sources inform ''Globes'' that the Israel Securities Authority will probably investigate suspicions of insider trading at Eden Springs Ltd. (Maayanot Eden) (TASE: MEYD) because of the unusual trading in its share before today’s important announcement. Today, the company announced that it was buying out its partner, Groupe Danone (Paris:DANO) in their joint venture Danone Springs of Eden BV for €86 million, as well as Groupe Danone’s stake in Eden Springs itself for €10 million.
Eden Springs’ share rose 12% on extraordinarily heavy turnover earlier this week. Today, after the announcement, the share fell 8.9%.
This is not the first time that the Securities Authority is investigating Eden Springs. Last year, controlling shareholder Giora Naftali and three of his friends and former employees were arrested on suspicions of insider trading. The Securities Authority suspected that just before Eden Springs and Groupe Danone announced their joint venture in 2003, Naftali told his friends about the pending deal. They bought shares and made a huge profit when Eden Springs’ share soared on news of the deal.
Published by Globes [online], Israel business news - www.globes.co.il - on May 8, 2007
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