US-based retail behemoth Wal-Mart has announced it is assisting Japanese authorities to investigate possible insider trading related to the company’s takeover of Japanese retail chain Seiyu.
Japanese newspaper the Nikkei reported that Japan’s Securities and Exchange Surveillance Commission (SESC) is investigating stock transactions conducted prior to Wal-Mart announcing on 22 October 2007 it would launch a tender to buy out publicly listed stocks in Seiyu.
When the company was delisted in April 2008 the value of its stock jumped from ¥88 to ¥139, reported the newspaper.
The SESC is investigating stock transactions conducted through accounts held by relatives of Seiyu employees before the intended buy out was made public.
“We have fully cooperated with the authorities for their investigations and will continue to do so,” said Tokyo-based Wal-Mart spokesperson Kumie Wama.
