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Police alerted to possible insider trading in Latvia's Ventspils Nafta stock

Xinhua, November 14, 2015 Adjust font size:

Latvia's financial regulator alerted law enforcement authorities on Friday to signs of possible insider trading and market manipulation in deals with Latvia's Ventspils Nafta holding company shares.

Latvia's financial and capital market commission said on Friday that it had scrutinized certain deals in Ventspils Nafta shares that took place on Nasdaq Riga between Sept. 9 and 11 when the price of Ventspils Nafta shares suddenly spiked on the stock exchange.

As a result of the preliminary investigation, which also included analyzing information provided by Nasdaq Riga and a bank, the regulator came to the conclusion that one particular trader might have used non-public information and illegal stock market manipulation.

"One investor's activities show visible signs of market manipulation and insider dealing," the regulator said.

Considering the size and character of the trader's deals, the regulator concluded that the transactions in question had caused serious financial damage and risks to other legally-protected interests.

The commission reported the suspected violations to the state police, asking them to launch a criminal investigation.

The regulator started its probe over possible insider trading after Ventspils Nafta shares jumped on the Riga stock market just days before Sept. 13 when the news broke that Euromin Holdings (Cyprus) Limited was buying a 43.25-percent stake in Ventspils Nafta from Latvijas Nafta Tranzits (LNT).

Euromin, a company of Vitol Group, which is the key shareholder of Ventspils Nafta, bought the 43.25-percent stake in Ventspils Nafta for 79.98 million euro, increasing its stake in the holding company to 93.24 percent. LNT, a subsidiary of Ventbunkers stevedoring company, used to be the second largest Ventspils Nafta shareholder with its 43.25 percent stake.

Ventspils Nafta is one of the largest holding companies in Latvia whose businesses include transshipment, the reloading and the storage of oil products, as well as shipping. Endit