Investigation of insider stock trading at Gorenje – Information on possible acquisitions leaks

The Slovenian police are investigating the leak of confidential information from Gorenje Holding about the possibility of the acquisition of the company by the Panasonic Corporation, reported Ljubljana’s Dnevnik.

The police have confirmed for the newspaper that a pre-penalty procedure on the alleged premature leaking of confidential insider information is in progress, but haven’t divulged any details due to the ongoing investigation.

The object of the investigation is the information that Panasonic started the due diligence, an inspection of Gorenje’s internal operations, in early August, with the possibility of increasing its ownership share and acquiring Gorenje.

The agreement between Gorenje’s management and Panasonic on the due diligence and a possible acquisition was signed on July 13. Contrary to the rules, this was not made known to all the stakeholders immediately. Instead, CEO Franjo Bobinac first informed Prime Minister Miro Cerar and a few of his government’s ministries about the agreement.

Since Gorenje shares jumped in mid-July, prior to the official announcement, and that there has been a lot of share turnover at the stock exchange, suspicion has arisen that someone has gained financially by using insider information.

Gorenje Notranja oprema d.o.o. Velenje

Panasonic Corporation

Vlada Republike Slovenije

Gorenje

Panasonic

insider information

due diligence

Franjo Bobinac

Miro Cerar

Government of Slovenia

Gorenje shares