The London-listed shares of Anglo American (Anglo American) soared in late trading in the UK on Wednesday. A few hours later, the company announced that its competitor BHP Group (BHP Group) had proposed a $39 billion takeover offer, which raised questions from some lawyers, investors, and commentators about the possible leak of the news.
On Wednesday, between 15:00 GMT and 15:30 GMT, Anglo-American Resources Group's shares rose by about 2.8%. The Anglo-American Resources Group issued a statement at around 23:00 GMT saying it had received an inquiry from BHP Billiton.
In stark contrast to this, shares of Anglo-American Resources Group's peers Rio Tinto (Rio Tinto), Glencore (Glencore), and Antofagasta (Antofagasta) rose only slightly by 0.2-0.5% just 35 minutes before the London stock market closed. If the acquisition plan succeeds, it will create the world's largest copper miner.
Harvey Knight (Harvey Knight), head of financial services regulators at Withers LLP (Withers LLP), said: “Before BHP Billiton publicly announced the takeover offer, Anglo-American Resources Group's stock price soared, raising questions about the integrity of the British market. The UK Financial Conduct Authority (FCA) may want to investigate this.”
The UK FCA generally does not comment on individual trade irregularities it investigates, nor does it comment on whether these acts will be reviewed.
In an emailed statement, the FCA said it was “unable to comment on the individual case.”
When asked if Anglo-American Resources had contacted the FCA about any potentially illegal transactions, or if the regulator had contacted the agency, a company spokesperson declined to comment.
“Prices have skyrocketed. Richard Bernstein (Richard Bernstein), chief investment officer of human rights investor Crystal Amber, said, “Some people are either very lucky or very knowledgeable.
The stock prices of mining companies such as Anglo-American Resources Group fluctuate greatly as commodity prices or major currencies such as the British pound and dollar change.
UK regulated companies and individuals have an obligation to detect and report suspicious transactions if they have reasonable grounds to suspect market abuse, such as insider trading or market manipulation.
Peter C. Earle, a senior economist at the American Economic Research Institute, said in an interview with Reuters: “There are more ways than ever before to share materials and private information in an undetected way between private chat networks, secure messaging apps, and even disposable phones.”
“Financial markets are in an arms race for information dissemination. Some are just and righteous, and some are private.”