Securities regulators obtained a court order freezing the assets of a Thailand-based trader, alleging he reaped illegal profits ahead of last week's announcement that Smithfield Foods would be acquired by Chinese meat company Shuanghui International Holdings.
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The Securities and Exchange Commission said on Thursday that Badin Rungruangnavarat may have received a tip about the impending acquisition announcement from a Facebook friend. The agency said the friend is an associate director at an investment bank that was advising a different company that also exploring purchasing Smithfield.
The SEC said Rungruangnavarat reaped more than $3 million in profits. The agency filed its complaint under seal in a U.S. district court in Illinois on Wednesday.
(Reporting by Sarah N. Lynch; editing by John Wallace)