Swedish authorities search LeoVegas head office amid insider trading investigation
The Swedish Economic Crime Authority has searched the Stockholm-based head office of LeoVegas after opening an investigation into alleged insider trading of the company’s shares.
On 7 June, LeoVegas was visited by the government agency and is now assisting the authority in an ongoing investigation, according to a short statement published on the LeoVegas investor relations website.
According to Swedish media outlet DI, the investigation is focused on suspicious trading in relation to MGM’s $607m bid to acquire LeoVegas in May.
In response, LeoVegas said: “No employee, member in the management team or board member in the company has been notified about any criminal suspicion.
“The company has no further information to provide. All questions concerning the preliminary investigation need to be directed to the Swedish Economic Crime Authority.”
LeoVegas: “No employee, member in the management team or board member in the company has been notified about any criminal suspicion.”
In a comment provided to iGaming NEXT, the Swedish Economic Crime Authority said: “We can confirm that our personnel has made an unannounced visit to LeoVegas’ offices in Stockholm this morning.
“We cannot however comment on the scope of our ongoing investigation at this time.”
MGM’s all-cash bid, which translated to SEK61 per share, represented a 44% premium on the Stockholm-listed operator’s closing stock price as of Friday 29 April.
Shares in LeoVegas shot up by a significant 51% on a one-week basis after the offer was made public, giving the operator a major lift compared to its publicly traded rivals:
More to follow…