SEC Chairman Lilia R. Bautista said yesterday that the Commission will look into allegations that some quarters had been involved in insider trading of WG&A shares. "We will look into it. We cannot say anything about it yet until we have completed our investigation," she said.
Shares of WG&A had been rising for the past week particularly from July 26 to Aug. 1, the day the proposed deal was disclosed to the public. The Chiongbians and Gothongs have agreed to jointly sell their shareholdings in WG&A to the Aboitizes, which shall give the latter a controlling stake in the shipping firm.
Bautista has already instructed Jose Tomas Syquia, head of the SEC’s Compliance and Enforcement Department, to investigate the matter to determine possible illegal trading activities.
The PSE, for its part, said it is now going over stock transactions involving WG&A and Cebu-based holding firm Aboitiz Equity Ventures Inc. (AEVI) of the Aboitiz clan. "The Compliance and Surveillance Department of the PSE is already looking into it although we are not privy to it," PSE Chairman Vivian Yuchengco said.
AEVI chief operating officer Erramon Aboitiz, however, pointed out that neither his company nor family traded shares of WG&A.
From a closing price of P3 at July 26, WG&A shares kept rising trading between P3.40 and P3.60 per share.
The proposed acquisition of the Aboitiz family of the Gothong and Ciongbian’s combined interests in WG&A was a result of the compromise agreement they had entered into to settle their differences.