Connect with us

Hi, what are you looking for?

Stock

Pennsylvania man charged with insider trading related to CVS takeover

By Jonathan Stempel

(Reuters) – Federal prosecutors charged a Pennsylvania man on Thursday with insider trading for using tips from his domestic partner to trade illegally ahead of CVS Health (NYSE:CVS)’s $9.5 billion purchase last year of primary care provider Oak Street Health.

Carlos Sacanell, 58, of Willow Grove, was also charged with lying to the FBI by denying having received the tips before the takeover was announced in February 2023. The U.S. Securities and Exchange Commission filed a related civil case against Sacanell.

A lawyer for Sacanell did not immediately respond to requests for comment. The office of U.S. Attorney Jacqueline Romero in Philadelphia said Sacanell was arrested on Thursday at his home.

Authorities said Sacanell generated $617,000 trading in Oak Street stock and options after his partner, a senior Oak Street executive, shared material non-public information about the planned takeover.

The SEC said the trading began two days after Sacanell’s partner, who had learned a takeover might be in the offing, lamented in a text message that it was “very uncomfortable having information I can’t share.”

Sacanell texted back that his partner should tell inquiring co-workers you don’t know what’s going on, the SEC said.

The partner was not charged.

CVS, the drugstore chain and pharmacy benefits manager, agreed to buy Oak Street for $39 per share, 50% above where the stock traded shortly before news of the takeover became public, the SEC said.

Oak Street’s share price rose 36% over the next two days, including after CVS announced the takeover. CVS valued the transaction at $10.6 billion including debt.

This post appeared first on investing.com






    You May Also Like

    Editor's Pick

    Sen. JD Vance (R-Ohio) and Minnesota Gov. Tim Walz (D) will face off Tuesday night at a CBS News vice-presidential debate in New York....

    Latest News

    A North Korean defector who escaped to the South more than a decade ago was detained after attempting to cross back into North Korea...

    Economy

    A U.N. human rights group confirmed Hamas’ leader in Lebanon, who was recently killed by Israeli strikes, was their employee.  Fateh Sherif was killed...

    Investing

    Astron (ASX:ATR) and Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) have completed the establishment of a joint venture to advance the Australia-based Donald rare earths and mineral sands...

    Disclaimer: balanceandcharge.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 balanceandcharge.com