The Financial Services Authority (FSA) has fined David Einhorn and his hedge fund Greenlight Capital £7.2m for trading on inside information in UK stock Punch Taverns in June 2009.
The FSA said in a statement: "On 9 June 2009, Einhorn was a party to a telephone conference in which it was disclosed to him by a corporate broker acting on behalf of Punch Taverns Plc that Punch was at an advanced stage of the process towards a significant equity fundraising. This was inside information and Einhorn should have appreciated this." The regulator said Einhorn gave the instruction to sell Greenlight's entire holding in Punch "a matter of minutes after the telephone conversation had concluded". Greenlight held 13.3% of Punch's equity at the time of the phone conversation, ...
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