Murdoch's News Corp has been in the news lately because of the take over bid for Dow Jones which is the parent company for The Wall Street Journal. It now appears that both the SEC and the NY State Attorney General's office have initiated investigations into possible improprieties. More below!
It is now being reported that both the SEC and Andrew Cuomo of the NY State Attorney General's Office are investigating suspicious call options associated with the take over bid. Both offices have issued subpoenas to obtain additional information.
The share price of the Dow Jones parent company increased dramatically after the announcement that News Corp was interested in the takeover at a significant premium. It is possible that someone knew about the upcoming bid offer and used that insider information. Here is what the above linked story had to say:
"Some options traders made big profits as Dow Jones shares rocketed over 57 per cent to around $US57.28 a share in the wake of the report of Murdoch's bid."
There were over 10,000 call options in April compared to 7,000 total for the previous three months.
You might want to stay tuned to this story to see who the folks were that acted on the inside information.