NEW YORK/PARIS, April 4 France's AMF stock
market regulator is considering whether to fine the UK arm of
U.S. hedge fund Elliott Management 40 million euros ($55
million) over allegations of insider trading and market
manipulation relating to French motorway operator APRR,
newspapers reported on Friday.
An Elliott spokesman rejected the accusations, saying they
were without merit and not supported by the evidence. He said
the hedge fund had presented its case to the AMF enforcement
committee earlier in the day.
Elliott Advisors UK would face a fine of 12.5 million euros,
and Elliott Management Corp 27.5 million should the AMF's
adjudicators agree to impose the penalties proposed by an
internal committee, Les Echos reported, with a final decision
expected in a few weeks.
The AMF accused the UK arm of Elliott of using privileged
information to deal in APRR shares whilst negotiating to sell
its stake in the company to APRR's majority shareholder
Eiffarie, a joint venture between French construction company
Eiffage and Macquarie Infrastructure Group,
the FT reported.
The FT reported that Elliott bought shares in APRR at below
its selling price in the run-up to the deal with Eiffarie. The
FT cited the hearing in Paris on Friday attended by Gordon
Singer, son of Elliott founder Paul Singer and head of its UK
The spokesman for Elliott said in a statement emailed to
Reuters: "Elliott's trading in APRR did not at any time make use
of any material non-public information, was for a legitimate
business purpose that was part of a longstanding trading
strategy, and did not artificially inflate the price of APRR
He added that none of the costs associated with the matter -
including any potential penalties - would be borne by the
The AMF was not immediately reachable for comment.
($1 = 0.7303 Euros)
(Reporting by Jennifer Ablan; Writing by James Regan; Editing
by Anthony Barker)