Dutch raid World Online

Published: 14 November 2000 y., Tuesday
Amsterdam prosecutors probe Net firm amid allegations of insider trading. Dutch prosecutors on Monday raided the Amsterdam offices of Internet service provider World Online NV, hoping to dredge up information linked with alleged insider trading at the ISP before its initial public offering earlier this year.World Online, which is expected to merge with Italian ISP and telecommuncations company Tiscali SpA, said it is cooperating with officials from the Dutch government. A source close to the company said the probe should not have any impact on the completion of the Tiscali deal, which was valued at about $4.9 billion when announced formally a week ago. The raid comes seven months after World Online's former Chairman Nina Brink resigned amid speculation that she had improperly sold World Online stock before the March 17 offering. Brink departed under a cloud of legal action from shareholders who say an undisclosed sale of her 9.5 percent stake for about 6 a share hurt market confidence in the ISP. The stock debuted at 43, but immediately went into freefall. The prosecutors were discussing alleged insider trading and were seeking documents connected with the matter, said a person close to the company. In a statement, prosecutors said that the investigation was a criminal one, and confirmed that World Online was cooperating, but said no further details would be released until the investigation was concluded. Brink declined to confirm or deny that she was a target of the investigation, but said, through a spokeswoman, that her house had not been raided. Tiscali had no immediate comment on the raid and gave no indications as to whether the investigation might create obstacles for its takeover of World Online.
Šaltinis: CNNfn
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