The Insider Trading Directorate is investigating trade in MB Technologies shares around the time of a management buyout announcement.
The directorate says it is investigating share trades that took place between 17 July and 29 August this year.
MB Tech announced on 17 July that it had received a letter from Clidet No 408, a special purpose vehicle backed by a consortium including senior management, declaring its intention to make an offer to acquire the company.
That offer was valued at 140c a share.
The share, which climbed to 130c after the announcement, lost 5c on 27 July and another 5c the following day. Trade was halted on 29 August after the share fell 15c or 12.5% to 105c.
It was reinstated the next morning to coincide with the issue of a notice saying that the consortium had reduced its offer price to 110c after a due diligence exercise.
The directorate emphasises that its function is to investigate share trades that might be in contravention of the Insider Trading Act, and not to investigate companies.
"The transactions investigated are not necessarily those of directors and management of the company and could well be other persons in possession of inside information such as professional advisors, service providers to the company and other persons who have received the information from an insider," it says.
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