Oli Scarff/Getty ImagesThe entity that turned $90,000 into $1.8 million on the H.J. Heinz deal is still unknown.The Federal Bureau of Investigation has opened a criminal inquiry into suspicious trades placed ahead of the $23 billion acquisition of H.J. Heinz, a person briefed on the matter said on Tuesday.
The F.B.I.’s involvement adds to the scrutiny surrounding the deal and further highlights the temptation that major takeovers present to traders.
Last week, a day after the deal was announced, the Securities and Exchange Commission promptly froze a Swiss account linked to possible insider trading in the Heinz takeover.
Like the S.E.C., the F.B.I. is examining a series of well-timed options trades made just before Berkshire Hathaway and the investment firm 3G Capital announced that they had agreed to buy Heinz. News of the deal sent the company’s shares, and the value of the options contracts, soaring.
“The F.B.I. is consulting with the S.E.C. to see if a crime was committed,” an F.B.I. spokesman said. He added that the bureau’s New York office, a main player behind the government’s recent insider trading crackdown, was handling discussions with the S.E.C.
The S.E.C. has not identified the trader or traders who placed the suspicious bets. The F.B.I. declined to comment further.
Authorities did acknowledge that the investigation centers on an unusual spike in options trades involving Heinz. The trades involved 2,533 options bought last Wednesday through a Swiss account at Goldman Sachs, according to the S.E.C.
Using what is known as a call option, the trades placed a bullish bet on Heinz without actually buying the company’s shares. Instead, the trades grant the opportunity to buy the stock at a given price through June.
The move struck authorities as out of the ordinary. For months leading up to the deal, there had been scant activity in Heinz options.
“The timing, size and profitability of the defendants’ trades, as well as the lack of prior history of significant trading in Heinz” in the account, the commission said in the complaint, “makes these trades highly suspicious.”
The anonymous investors spent nearly $90,000 on the call options, a position that skyrocketed on paper to $1.8 million after the deal was announced on Thursday. At the time, Heinz’s stock rose to $72.50, up 20 percent from Wednesday, matching Berkshire’s offer price.
The trades were funneled through the Goldman account, identified as “GS & Co c/o Zurich Office.” The bank, which is not accused of wrongdoing, has said it is cooperating with the investigation.
The growing inquiry may cast a cloud over the Heinz deal. While the S.E.C. already raised concerns, the F.B.I.’s examination adds to the scrutiny and for the first time raises the prospect of criminal actions.
Once authorities identify the traders, the S.E.C. and F.B.I. will turn their focus to the limited universe of insiders who could have leaked details of the deal. Dozens of people — including executives at both the buyers and the seller — possessed confidential information about the deal.
As authorities pursue the Heinz case, they are building on a recent campaign to root out insider trading on Wall Street. The S.E.C. filed 58 such actions last year, and the F.B.I. helped bring criminal cases in a number of actions against hedge funds and corporate insiders.