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hi mike
i did not understand properly what is insider dealing. if i am an employee holding shares, and I get inside info that there is a take over happening, if I sell my shares ( is that insider dealing as it has not been made public) Isnt that a bit unfair?
Also, in money laundering, how can tthey show that money from illegal source has not become legal? I mean how DID they even get that money etc?If there’s a takeover coming … why on Earth would you sell your shares?
The crime of Insider Dealing (in a takeover situation) is where you know that your employer company is being considered for a takeover by a bigger company and you go out and buy shares in your employer company
In money laundering, if the money being laundered has come from, for example, dealing in drugs … and I’m not talking here about a pharmacy
Thousands of people own the shares of a public company
In order that a vulture company should have any chance of suuess when they make an offer to take over the victim company, they have to but the shares of the victim from the existing shareholders
So, the vulture makes an offer.
But that offer has to be good enough to persuade the holders of the victim company shares to sell, so the offer from vulture is likely going to be higher (often substantially higher) than the victim company shares current market price
When the takeover is announced, the victim company shares will rocket upwards – often to a price higher than the vulture’s offer because the market expects the victim directors to reject the offer and so the vulture will come back with an even higher offer
It’s all very exciting!
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