Probe into insider trading

Deutsche won the mandate to advise Kirin in the Lion Nathan deal and ASIC is investigating whether the confidentiality of the bid was breached. The deal gave Deutsche the Lion Nathan “tombstone”, slang for an investment banker’s brag for a completed deal. In the deal, Lion Nathan agreed to Kirin’s offer of AUD 12.22 a share. The company went into a trading halt on 23 April last year at AUD 7.96 a share; when it resumed trading, prices shot to AUD 11.09.

The deal information is believed to have been transferred to younger participants and the key allegation is whether a Deutsche Bank employee told an external party, who then passed the information on to an organised crime figure.

No charges have been laid and a statement from Deutsche Bank indicates that they are co-operating with ASIC.