FBI Investigating Heinz Deal After Insider Trading Allegations
PITTSBURGH (KDKA) – The FBI is also now investigating possible insider trading prior to Berkshire Hathaway acquiring Heinz, Reuters reports.
Over the weekend, it was announced that the Securities Exchange Commission had obtained a court order to freeze assets in a Swiss bank account that were to be used in the deal, according to the Associated Press.
The deal was announced last Thursday, when the Warren Buffet-owned company said it was acquiring H.J. Heinz in a $28 billion deal, taking the company private.
The acquisition also raised concerns about what the deal will mean for employee’s jobs.
“It can be unsettling,” Allegheny County Executive Rich Fitzgerald said last week. “If you remember a number of years ago when Mellon Bank was bought up by BNY and they became BNY Mellon, I think a lot of us were concerned that those jobs were going to shift to NY where the parent company is. We’ve seen just the opposite. We’ve added thousands of jobs since then because Pittsburgh is a great place to do business. Pittsburgh is more economical, it has some of the infrastructure needed. We partner with our companies.”