MILAN, Dec 3 (Reuters) - The chairman of Italian utility Enia SpA EN.MI is under investigation for insider trading by prosecutors in the town of Reggio Emilia but the case has been transferred to Parma for procedural reasons, sources at the Parma prosecutor's office said.
Enia Chairman Andrea Allodi has not been notified of any such transfer, a spokesman for Enia said on Wednesday.
Enia -- which comprises the local utilities of the towns of Parma, Reggio Emilia and Piacenza -- is headquartered in Parma.
Charges brought by the Refounded Communist political party of Reggio Emilia against Allodi for insider trading were officially registered at the town’s prosecutor’s office on Nov. 7, the spokesman said.
Under Italian law if charges are brought against a party, the prosecutor’s office has a duty to open investigations.
The prosecutors will then later decide whether there are grounds for pursuing the investigations or dismissing the case.
The charges brought against Allodi relate to the acquisition of Enia shares ahead of the announcement of the planned merger with local utility Iride SpA IRD.MI.
At a press conference on Oct. 30 presenting the merger with Iride, Allodi said he had bought the shares as a sign of trust in the operation. (Reporting by Stephen Jewkes; )
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