FACTBOX: More arrests in Galleon insider-trading case
SAN FRANCISCO (Reuters) - Federal prosecutors have arrested nine more people in the Galleon Group insider-trading scandal.
The following describes some of the trades and companies involved with the case, as outlined in the complaints:
* Telecom equipment maker Avaya Inc agreed to sell itself to Silver Lake and TPG Capital in mid 2007. Under the deal, Avaya shareholders were expected to receive roughly a $4 premium per share.
Zvi Goffer purchased about 300 call options on Avaya a few days before the company's acquisition, making $20,400. Plate bought about 15,000 shares of Avaya before the deal was announced and made $10,870.
* Network equipment maker 3Com Corp agreed to sell itself to Bain Capital Partners, LLC in September 2007. 3Com shareholders stood to receive $5.30 in cash for each share of the stock, which was 44 percent higher than the company's closing price of $3.68 the day before the announcement. Ropes & Gray acted as legal advisor to Bain Capital. The 3Com deal ultimately fell through after U.S. regulators blocked it.
For nearly two months before the companies announced the merger, Zvi Goffer purchased about 260,000 shares of 3Com stock, resulting in a profit of about $378,608. Craig Drimal made $4,499,495; Emmanuel Goffer, $723,523; Michael Kimelman, $16,657; and Plate made about $500,000.
* TPG Capital also agreed in November 2007 to buy drug maker Axcan Pharma Inc. The purchase price of $23.35 was 28 percent over the average trading price of the company's stock the day before the announcement. Ropes & Gray provided legal services to TPG Capital.
For a month before the announcement, Drimal bought numerous shares of the Axcan stock, eventually selling it all for a profit of nearly $2 million. Plate bought about 47,000 shares before the deal was announced and made $250,000 in trading profit.
* Workforce management services company Kronos Inc said in March 2007 that it agreed to sell itself to Hellman & Friedman. Kronos said its shareholders were set to receive $55 in cash for each share of the company's stock, "representing a 34.4 percent premium over Kronos' closing share price from 20 trading days ago."
Zvi Goffer purchased about 19,000 shares of Kronos stock a few days before the acquisition announcement, profiting by approximately $156,370. Emmanuel Goffer -- relationship unknown -- purchased roughly 30,500 shares of the company's stock, pulling in $352,681 in profits. David Plate made about $100,000 in two separate trading accounts.
* When Hilton Hotels Corp agreed to sell itself to Blackstone Group LP, the companies said that Blackstone would acquire all outstanding stock of Hilton stock for 40 percent more that its previous day's closing price.
For a few days before the acquisition, Zvi Goffer purchased 56,100 shares of Hilton stock and 512 call options, eventually resulting in a profit of about $354,612.
The day before the acquisition, Emmanuel Goffer bought an unknown number of shares, but eventually sold all of his holdings for more than $1.67 million. Plate bought about 10,000 shares of Hilton before the deal was announced and made about
$94,900.
* Adesa Inc, a company that provided wholesale used vehicle auctions, said in December 2006 that it was going public. Deep Shah, an analyst at Moody's Investors Service, had tipped off a cooperating witness regarding the sale, among other deals.
(Reporting by Ian Sherr; editing by Andre Grenon)
