Police suspect Kone CEO of insider trading with Partek stock

print this

Helsinki police are investigating the activities of Antti Herlin, CEO of the Finnish engineering company Kone, and Tapio Hakakari, secretary of the company’s Board of Directors, in connection with the events leading up to the merger of Kone and Partek in 2002.
      Helsingin Sanomat has learned that both men are suspected of misusing insider information in their dealings with Partek shares. The number of suspects could grow.
      Herlin and Hakakari bought millions of euros of Partek stock for the portfolio of the Herlin family company Security Trading. The purchases were made before Kone published its offer to buy out Partek. The announcement was followed by a sharp rise in the Partek share price.
      The family company made a sales profit of about EUR 1.5 million in the deal.
     
The last purchases of Partek stock into the family company’s portfolio were made about a month before Antti Herlin first asked state representatives if Partek might be for sale.
      Tapio Hakakari denied on Sunday that any misuse of insider information or other illegal acts had taken place.
      "Security Trading had absolutely no knowledge that Kone was going to buy Partek", Hakakari said. As he sees it, no insider information existed when Security Trading decided to buy the Partek shares.
      "In our opinion Partek was undervalued, and we knew its field of operations. That is why we bought its shares for Security Trading as a financial investment", he explained in August 2002.
      According to Hakakari, the offer to buy Partek led to a reduction in the share price of Kone, and that therefore the Herlin’s family company did not actually benefit from the deal.
      Hakakari also said that the police had not contacted him about the deals, and that the Finnish Financial Supervision Authority had not found any reason for further action.


Previously in HS International Edition:
  Kone to be split into two corporations - stock exchange listings for both (18.8.2004)

Helsingin Sanomat