TXU LBO Leads to Insider Trading Charges

Federal regulators have charged several unnamed individuals with insider trading, related to the proposed $45 billion buyout of energy company TXU. The SEC said in its complaint that “highly profitable and suspicious” purchases of TXU stock options occurred last month, with the proceeding buyout announcement putting the buyers in a position to gain more than $5.3 million in profits. That money has now been frozen, but the buyers have yet to be identified because the purchases were made via foreign brokerages.