SET to probe GE Capital purchase of BAY stock
The Stock Exchange of Thailand (SET) said yesterday it would look into GE Capital Asia Pacific Ltd's purchase of shares in Bank of Ayudhya (BAY) for any breaches of insider-trading laws.
BAY's stock has gained almost 50 per cent this year. It closed yesterday at Bt17.50.SET executive vice president Sopawadee Lertmanuschai said the SET examined every successful deal for possible insider trading and that this investigation would cover every aspect in detail. "We'll probe into the period when the news was leaked and trace back how the stock moved. And whether there was any correlation. If we suspect anything, we'll ask for more information from the relevant parties. If there is any violation, we'll pass the case to the SEC (Securities and Exchange Commission)," said Sopawadee. Charlotte Donavanik, BAY's first senior executive vice president, said her bank was willing to let the SET review its stock movements. She said that so far, the bank had been open to the public at all times about the progress of its talks with GE Capital. She put down to market speculation the rise in the value of the bank's stock, including in anticipation of the deal, since the bank itself was still unable to disclose details about the transaction.
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