Trading on ATN shares suspended
Stock exchange probes possible insider trading
By Elizabeth Sanchez-Lacson
Philippine Daily Inquirer
First Posted 04:41:00 10/04/2008
Filed Under: Stock Activity, Markets & Exchanges
MANILA, Philippines—The Philippine Stock Exchange (PSE) has suspended trading on shares of ATN Holdings Inc. for a month starting Oct. 7 in view of undisclosed stock trading deals by three of the company’s directors from Jan. 7 to June 30 in what may be insider trading.
In a letter to ATN Holdings dated Sept. 26, the PSE said transactions — buying and selling of ATN stocks — by company directors Renato Reyes, Antonio Gregorio and Richard Palou were in violation of Sections 13.1 and 13.2 of the revised disclosure rules of the PSE.
“I leave that to the disclosure department,” PSE president Francis Lim said. “I understand there is a show-cause letter. It involves the block-out rule — that’s a disclosure rule that says if you are an insider like a director [or] principal officer, you cannot trade on your company’s shares from the time you acquire inside information until two full trading days after the disclosure.”
“It’s not enough that you disclose. You still have to wait after two trading days” to trade the shares, Lim added.
In its letter to ATN, the PSE said its records showed the transactions by the three directors were not disclosed within five trading days after acquisition or disposal of ATN shares. It pointed to Section 13.1, which says companies must disclose to the exchange the direct and indirect ownership of its directors and principal officers in shares of the companies within two trading days after three circumstances: The company’s shares are first admitted in the official registry of the PSE; a director is first elected or an officer is appointed; or there is an acquisition or sale or change in the shareholders of directors and officers.
The PSE also said the transactions by Reyes were found to be in violation of the exchange’s “block-out rule,” which prevents company directors and principal officers from dealing with the company’s shares when material nonpublic information is obtained and up to two full trading days after it is disclosed.
The letter said, “The issuer [ATN Holdings] submitted its quarterly report for period ended Dec. 31, 2007, on Feb. 14, 2008, and its board approval to change the par value on Feb. 20. It was during this period, Feb. 13 to 26, when Mr. Reyes transacted with issuer’s securities.”
The Philippine Daily Inquirer tried to reach ATN Holdings officials for comment on the PSE letter but was told that the company’s vice president, Paul Saria, to whom the PSE letter was addressed, was in a meeting.
A staff member at the company said ATN had sent its reply to the PSE.
The PSE also imposed a penalty of P250,000 on the company on top of the trading suspension for the violation of disclosure rules twice.
ATN was formerly Jabpract Mining and Industrial Corp., incorporated in February 1961. In 1996, the company changed its name and its corporate purpose, to a holding firm from a mining company. Edited by INQUIRER.net
|
